Basic Model of Income Determination
There is no content available!
To Access the full content, Please Purchase
-
Q1
By propensity to save we mean the
Marks:1Answer:
relation between income and saving.
Explanation:
There is direct relation between income and savings. When income increases the rate of savings also increases and vice-versa.
-
Q2
The relationship between MPC and MPS is that
Marks:1Answer:
MPC + MPS = 1
Explanation:
MPS + MPC = 1 -
Q3
By consumption function we mean the
Marks:1Answer:
relation between consumption and income.
Explanation:
The relationship between consumption and income is called Propensity to consume or consumption function C = f ( y ). -
Q4
Net Export is a component of
Marks:1Answer:
Aggregate Demand.
Explanation:
Aggregate demand is the total of consumption expenditure plus government expenditure plus investment expenditure plus net exports. -
Q5
Aggregate demand is defined as the
Marks:1Answer:
total demand of goods and services.
Explanation:
Aggregate demand is total demand for goods and services in an economy during a particular year.