# Determination of Income and Employment-Propensity to Consume and Propensity to Save (CBSE (Central Board of Secondary Education- Board Exam) Class-12 Economics): Questions 1 - 6 of 22

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## Question number: 1

» Determination of Income and Employment » Propensity to Consume and Propensity to Save

Essay Question▾

### Describe in Detail

Draw a straight line consumption curve. From it derive a savings curve explaining the process. Show on this diagram:

(a) the level of income at which Average Propensity to Consume is equal to one.

(b) a level of income at which Average Propensity to Save is negative

### Explanation

AC is the consumption curve and OA is the consumption expenditure at zero

level of

… (97 more words) …

## Question number: 2

» Determination of Income and Employment » Propensity to Consume and Propensity to Save

One Liner Question▾

### Write in Brief

What is the relationship between marginal propensity to consume and marginal propensity to save?

## Question number: 3

» Determination of Income and Employment » Propensity to Consume and Propensity to Save

One Liner Question▾

### Write in Brief

What is the relationship between marginal propensity to save and marginal propensity to consume?

## Question number: 4

» Determination of Income and Employment » Propensity to Consume and Propensity to Save

### Write in Short

Complete the following table:

 Income Saving MPC APC 0 -20 - - 50 -10 - - 100 0 - - 150 30 - - 200 60 - -

## Question number: 5

» Determination of Income and Employment » Propensity to Consume and Propensity to Save

Appeared in Year: 2005

Essay Question▾

### Describe in Detail

 Level of income ( Rs. ) Consumption expenditure Marginal Propensity to consume Marginal Propensity to save 400 240 - - 500 320 - - 600 395 - - 700 465 - -

### Explanation

 Level of income ( Rs. ) (Y) Consumption expenditure (C) Marginal Propensity to consume Marginal Propensity to save 400 240 0.60 0.40 500 320 0.80 0.20 600
… (38 more words) …

## Question number: 6

» Determination of Income and Employment » Propensity to Consume and Propensity to Save

Appeared in Year: 2011

Essay Question▾

### Describe in Detail

Explain the relationship between investment multiplier and marginal propensity to consume.

### Explanation

Investment multiplier involve that any change in investment can cause change in income and output.

Investment multiplier K =

Investment Multiplier shares direct positive relationship with marginal propensity to consume.

The relationship is expressed as follows.

K=

Assume that value of MPC is 0.6 then

K= =

… (29 more words) …

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