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 : Collective consumption means 

Option 1: household consumption 

Option 2: individual consumption 

Option 3: self-consumption 

Option 4: consumption by the citizens of the country 

Question : What is the change in fiscal deficit if both the primary deficit and interest payments are doubled?

Option 1: Increase by 100%

Option 2: Increase by 200%

Option 3: Decrease by 50%

Option 4: Decrease by 100%

Question : Galloping inflation is also known as

Option 1: walking inflation

Option 2: running inflation

Option 3: hyperinflation

Option 4: creeping inflation

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