Suppose the savings function is , then find the correct answer from below:
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UGC-NET 2024 Question 16: Consumption and investment
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Suppose the savings function is S = -5 + 0.3q, then find the correct answer from below: (A) APC < MPC (B) APC = MPC (C) APS > MPS (D) APC > MPC
Consumption and investment has come up 74 times in 7 exams since 2005.
What this question tests
This question is on The Keynesian consumption function, part of Consumption and investment in Macroeconomics.
Consumption as a function of current income: the propensities to consume and save.
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