Question : The aggregate demand (AD) is given by AD = C + I + G + X - M. If consumption (C) is INR 3,500, investment (I) is INR 2,000, government spending (G) is INR 1,500, exports (X) are INR 800, and imports (M) are INR 600, what is the aggregate demand?

Option 1: INR 4,200

Option 2: INR 4,700

Option 3: INR 5,200

Option 4: INR 7,200

Question : Which of the following is correct?
 

Option 1: AD= C+I+NX-G
 

Option 2: AD= C+G-I+NX
 

Option 3: AD= C+I+G+NX(X-M)
 

Option 4: AD= C+I+G+NX(M-X)
 

Question : The investment multiplier is 4. If there is an autonomous increase in investment spending of INR INR 1,000,

what will be the change in equilibrium income?

Option 1: INR 1,000
   

Option 2: INR 4,000
  

Option 3: INR 5,000

Option 4: INR 9,000

Question : What is the impact of a stronger domestic currency on a country's imports and exports?

Option 1: Increase in imports, decrease in exports
  

Option 2: Decrease in imports, increase in exports
   

Option 3: Increase in imports, increase in exports

Option 4: Decrease in imports, decrease in exports

Question : The marginal propensity to consume (MPC) is 0.8. If there is an autonomous increase in investment spending of INR 1,500, what will be the change in equilibrium income?

Option 1: INR 1,200
    

Option 2: INR 1,500
   

Option 3: INR 7,500

Option 4: INR 6,000