Question : Which of the following statement are true?

1. Average propensity to save can never be negative.
2. Higher the level of national income, higher is the level of autonomous consumption.

Question : Which of the following are true?

1. Real flow is also known as nominal flow.
2. In two sector economy, total production is equal to total consumption.

Question : Which of the following statement are true?

1. When consumption function is C=40+0.8Y, savings will be equal to -40 at zero level of income.
2. As per above consumption function, MPS= 0.2 

Question : Which of the following statement are true?

1. At breakeven point, income and consumption are equal.
2. Equality between AD and AS implies the equality between income and AD.

Question : Which of the following are true?

1. Generation and distribution are the two phases in circular flow of income.
2. There are no exports in a closed economy.