Exam 4: Keynesian Economics and Related Concepts

According to Keynes the most important determinant ofconsumption

Which of the following is not correct:

In the equation C = 60 + 0.6 Y, MPCis

Which of the following can cause shifts in consumption function:

Keynesian economics is also known as:

MEC isinversely related to:

In the Keynesian two sector economy, AD

MEC is directly related to

When disposable income risesfrom Rs 500 to Rs 600 and consumption expenditure changes from Rs 470 to Rs 560, MPC will be equal to

In the Keynesian two sector model, when AD = AS, then:

Keynes considered subjective and objective factors:

In Keynesian terminology, investment means:

Schedule that expressesrelationship between rate of interest and corresponding amount of investment

According to Keynes, saving is:

According to Keynes the most important determinant ofinvestment

APC is determined by the following equation:

The MEC increases when:

Rate of change in savings to change in income:

Keynesian economics is:

In a two sector economy, aggregate demand is equalto