What is consumption function? . What do you mean by propensity to consume? .
Define average propensity to consume (APC). . Define marginal propensity to consume (MPC). .
What do you mean by propensity to save? . Define average propensity to save (APS). .
Define Marginal Propensity to Save (MPS). . Define Multiplier. .
Define Accelerator. Part C Answer the following questions in one paragraph . State the propositions of Keynes’s Psychological Law of Consumption . Differentiate autonomous and induced investment.
. Explain any three subjective and objective factors influencing the consumption function. . Mention the differences between accelerator and multiplier effect a a c a d a a d c a a d c d d a a d a b - - Consumption and Investment Functions .
State the concept of super multiplier. . Specify the limitations of the multiplier. Part D Answer the following questions in a page .
Explain Keynes psychological law of consumption function with diagram. . Briefly explain the subjective and objective factors of consumption function? .
Illustrate the working of Multiplier. . Explain the operation of the Accelerator. .
What are the differences between MEC and MEI How do you calculate MPC from consumption function? ACTIVITY Asis Banerjee &DebashisMazumdar - Principles of Economics – ABS publishing House. Edward Shapiro – Macro Economic Analysis – Galgotia publication Pvt. Ltd.
Maria John Kennedy.M. - Macro Economic Theory ( ) - PHI learning Pvt. Ltd. Siddiqui.S.A.
&Siddiqui.A.S. – Introductory Macroeconomics – Laxmipublication Pvt. Ltd. References - - Monetary Economics