* not completed

. The average propensity to consume is measured by:

C/Y correct incorrect

C * Y correct incorrect

Y/C correct incorrect

C+Y correct incorrect

* not completed

. An increase in the marginal propensity to consume will:

Lead to the consumption function becoming steeper correct incorrect

Shift the consumption function upwards correct incorrect

Shift the consumption function downwards correct incorrect

Shift the savings function upwards correct incorrect

* not completed

. If the Keynesian consumption function is C = 10 + 0.8 Yd then, if disposable income is £1000, what is amount of total consumption?

£0.8 correct incorrect

£800 correct incorrect

£810 correct incorrect

£0.81 correct incorrect

* not completed

. If the Keynesian consumption function is C = 10 + 0.8 Yd then, when disposable income is £1000, what is the marginal propensity to consume?

0.8 correct incorrect

800 correct incorrect

810 correct incorrect

0.81 correct incorrect

* not completed

. If the Keynesian consumption function is C = 10 + 0.8 Yd then, when disposable income is £1000, what is the average propensity to consume?

0.8 correct incorrect

£800 correct incorrect

£810 correct incorrect

0.81 correct incorrect

* not completed

. As national income increases:

The average propensity to consume falls and gets nearer in value to the marginal propensity to consume correct incorrect

The average propensity to consume increases and diverges in value from the marginal propensity to consume correct incorrect

The average propensity to consume stays constant correct incorrect

The average propensity to consume always approaches infinity correct incorrect

* not completed

. An increase in consumption at any given level of income is likely to lead to:

Higher aggregate demand correct incorrect

An increase in exports correct incorrect

A fall in taxation revenue correct incorrect

A decrease in import spending correct incorrect

* not completed

. Lower interest rates are likely to:

Decrease consumption correct incorrect

Increase cost of borrowing correct incorrect

Encourage saving correct incorrect

Increase borrowing and spending correct incorrect

* not completed

. Friedman's theory of consumption focuses on:

Past income correct incorrect

Current income correct incorrect

Disposable income correct incorrect

Permanent income correct incorrect

* not completed

. The marginal propensity to consume is equal to:

Total spending / total consumption correct incorrect

Total consumption / total income correct incorrect

Change in consumption / change in income correct incorrect

Change in consumption / change in savings correct incorrect