Question : If MPC is four times MPS and consumption at zero level of income is 50 crore derive the consumption function.

Option 1: C=50+0.2Y

Option 2: C=50+0.8Y

Option 3: C=50-0.2Y

Option 4: C=50-0.8Y

Question : What is the value of MPS in the following savings function S= -100+0.2Y and also determine saving at the Y=1000.

Option 1: -100, 100

Option 2: 0.2, 100

Option 3: 0.8, 100

Option 4: None of the above.

Question : If MPC is four times MPS and consumption at zero level of income is 80 crore. Derive the saving function.

Option 1: S=80+0.8Y

Option 2: S=80-0.8Y

Option 3: S= -80+0.2Y

Option 4: S= -80+0.8Y

Question : Which of the following statements are correct?

1. Consumption function refers to functional relationship between consumption and savings.
2. It is a psychology concept as it is influenced by the subjective factors like consumers, taste preference, etc.
3. It also shows the consumption level at different levels of income.
4. C=f(Y)

Option 1: 1,2&3
 

Option 2: 2,3&4
 

Option 3: 1,3&4
 

Option 4: Only 3&4
 

Question : This function of money has simplified the borrowing and lending operations.
 

Option 1: Medium of exchange
 

Option 2: Measure of value (Unit of value)
 

Option 3: Store of value
 

Option 4: Standard of deferred payment.