List of top Economics Questions on Consumption and Saving Functions

Consumption expenditure that remains unchanged even when income changes is known as:
According to the paradox of thrift, if people in an economy increase their savings excessively, it may lead to:
Which of the following is an example of a consumer good?
If the marginal propensity to consume (MPC) is \(0.6\), find the value of the tax multiplier.
If the marginal propensity to consume (MPC) is \(0.6\), find the value of the tax multiplier.
If the marginal propensity to consume (MPC) is \(0.6\), find the value of the tax multiplier.
If the marginal propensity to consume (MPC) is \(0.6\), find the value of the tax multiplier.
Which of the following statements is incorrect about marginal and average propensity to save?
Match List-I with List-II:
List-IList-II
(A) Average propensity to save(I) Inversely related to the investment multiplier
(B) Average propensity to consume(II) Ratio of change in consumption to change in income
(C) Marginal propensity to save(III) Always less than one
(D) Marginal propensity to consume(IV) Can’t be zero
Choose the correct answer from the options given below: