Q.1.14 In the Keynesian model, what is the most important determinant of a household’s consumption? (a) Disposable income. (b) Total wealth. (c) The number of persons in the household. (d) Its’ net wealth.
Q.1.14 In the Keynesian model, what is the most important determinant of a
household’s consumption?
(a) Disposable income.
(b) Total wealth.
(c) The number of persons in the household.
(d) Its’ net wealth.
Q.1.15 Induced consumption is:
(a) the part of consumption which is independent of the level of income.
(b) the minimum level of consumption that is financed from sources other
than income.
(c) The maximum level of consumption that is financed from sources other
than income.
(d) shown by the slope of the consumption function.
Q.1.16 In the Keynesian model, an introduction of a proportional tax will:
(a) increase the slope of the consumption function.
(b) reduce the multiplier.
(c) increase the equilibrium level of income.
(d) increase the multiplier.
Q.1.17 A decrease in the price level will:
(a) shift the
(b) shift the AD curve to the left.
(c) shift the AS curve to the right.
(d) leave both the AD curve and the AS curve unchanged.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
