Question : Which of the following statement are true?

1. When consumption function is C=40+0.8Y, savings will be equal to -40 at zero level of income.
2. As per above consumption function, MPS= 0.2 

Question : Which of the following statement are true?

1. In a two sector economy, if consumption is equal to income, average propensity to save will be zero.
2. In a two sector economy if income is zero consumption will also be zero.

Question : Which of the following are true?

1. Real flow is also known as nominal flow.
2. In two sector economy, total production is equal to total consumption.

Question : Which of the following statement are true?

1. APC is more than 1 before break-even point.
2. The point at which consumption curve intersect the 45 degree line, APS is zero.

Question : Which of the following statement are true?

1. Slope of consumption curve is indicated by APC.
2. According to Keynesian theory of employment, Ex-ante savings and ex-post savings are always equal.