Question : Which of the following statement are true?

1. When consumption function is C=50+0.6Y, consumption is 140 when Y= 150.
2. When Saving function is S= -50+0.4Y, savings is 10 when Y= 150.

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.

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 statement are true?

1. If APC is 1.05 then APC will be -0.05.
2. When consumption function is C=60+0.6Y, savings are -60 at Y=0.

Question : Which of the following statement are true?

1. If APC is 1.05 then APS would be positive.
2. MPC represents slope of the consumption function.