Question : For an inferior good , demand falls when 

Option 1: Price rises .

Option 2: Income rises.

Option 3: Price fall.

Option 4: Income fall.

Question : Keeping other factors constant, when the price of foreign currency rises,    national income is:

Option 1: Might fall
 

Option 2: Might increase
 

Option 3: Both a and b

Option 4: Not affected

Question : The law of demand states that when _____.

Option 1: income and price rise demand rises

Option 2: income rises demand rises

Option 3: price rises demand rises

Option 4: price falls demand rises

Question : The multiplier effect refers to the:

Option 1: Increase in consumption due to an increase in income
  

Option 2: Increase in investment due to an increase in consumption
    

Option 3: Increase in income due to an increase in investment

Option 4: Increase in income due to an initial change in spending

Question : The consumption function shows the relationship between:

Option 1: Saving and income
 

Option 2: Consumption and saving
  

Option 3: Consumption and investment

Option 4: Consumption and income