Keynes suggested that decisions to consume and save were based on ?

Related Mcqs:

1. How is termed the economic theories or Maynard Keynes especially those which advocate government monetary and fiscal and stimulate business activity ?

   A. Market Economy
   B. Harvard Group
   C. Keynesian
   D. London Group

2. Macroeconomic theory that emphasized the theories of Keynes and de-emphasized the classical theory developed as the result of the failure of ?

   A. economic theory to explain the simultaneous increases in inflation and unemployment during the 1970s
   B. The classical model to explain the prolonged existence of high unemployment during the Great Depression
   C. fine tuning during the 1960s
   D. the economy to grow at a rapid rate during the 1950s

3. According of Keynes, the level of employment is determined by ?

   A. the behaviour of trade unions.
   B. the quantity of money
   C. price and wages
   D. the level of aggregate demand for goods and services

4. Keynes liquidity preference theory of the interest rate suggests that the interest rate is determined by ?

   A. aggregate supply and aggregate demand
   B. the supply and demand for loanable funds
   C. the supply and demand for money
   D. the supply and demand for labor

5. A company faces several major decisions in international marketing the first of these decisions is often ?

   A. deciding whether to go international
   B. looking at the global marketing environment
   C. deciding which markets to enter
   D. deciding how to enter markets

6. If the marginal propensity to consume on domestic products is 0.9 the size of the multiplier is ?

   A. 10
   B. 1
   C. 9
   D. 0.1

7. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the average propensity to consume is what ?

   A. 0.8
   B. 800
   C. 810
   D. 0.81

8. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the marginal propensity to consume is what ?

   A. 0.8
   B. 800
   C. 810
   D. 0.81

9. An increase in the marginal propensity to consume will ?

   A. increase the size of the multiplier
   B. Increase the marginal propensity to save
   C. Decrease national income
   D. Reduce injections into the economy

10. The marginal propensity to consume is equal to ?

    A. Total spending / total consumption
    B. Total consumption / total income
    C. change in consumption / change in income
    D. Change in consumption / change in savings