Question : Usually, the reduction in the taxes will have ____________ multiplier effect compared to an increase in government spending on aggregate demand.

Option 1: no

Option 2: smaller

Option 3: higher

Option 4: equivalent

Question : Acceleration is:

Option 1: Inversely proportional to the force

Option 2: Inversely proportional to mass

Option 3: Directly proportional to mass

Option 4: Directly proportional to the force

Question : The Psychological Law of Consumption states that

Option 1: proportionate increase in consumption is less than a proportionate increase in income.

Option 2: increase in income is equal to an increase in consumption.

Option 3: increase in consumption is greater than the increase in income.

Option 4: consumption does not change with a change in income.

Question : A sudden decrease in the birth rate would cause _______.

Option 1: increase in per capita income

Option 2: increase in investment

Option 3: increase in savings

Option 4: increase in loan requests

Question : Which of these is not the correctly stated component of the expenditure method of measuring national income?

Option 1: Final investment expenditure by firms

Option 2: Final government expenditure

Option 3: Export plus import expenditure

Option 4: Final consumption expenditure by households