ECO442 Email: bbcnoun@gmail.com Whatsapp: 08131667008 The notion of disproportional consumption function implies that in the short run and propensity to consume do not coincide. Answer: average; marginal The slope of the saving function is the Answer: mps The is the ratio of change in consumption to the change in income which symbolically can be written as . Answer: mpc ; i"c/i"y APS refers to that proportion of income that is devoted to Answer: saving “men are disposed as a rule and on the average, to increase their consumption as their income increase but not by as much as the increase in their incomeâ€?. This statement was credited to — Answer: j.m. keynes The LM represent equilibrium in the market Answer: money The MPC refers to the fraction of additional disposable income that is consumed. Answer: true The of the linear graph defines the marginal propensity to consume Answer: slope ‭ ‬expresses the functional relationships between consumption expenditure and all its determinants. Answer: consumption function Other factors, other than income that determine consumption are called — Answer: shift factors The value of the marginal propensity to consume determines the size of Answer: multiplier is the equality of money demanded and supplied at equilibrium level of income and interest rate. Answer: Im consumption function is the relationship between total expenditure and total disposable income in the economy, holding all other determinants of consumer spending constant Answer: true Kuznets observes that in the early stages of economic growth relative income inequality increases, stabilises for a time and then decline in the later stages. This is known as the . Answer: inverted u-shaped hypothesis Kuznets observes that in the early stages of economic growth relative income inequality increases, stabilises for a time and then decline in the later stages. This is made known in the theory of . Answer: distribution The non-accelerating inflation rate of unemployment is also known as (NAIRU) Answer: natural rate of unempolyment The figure 100 in the following function imply , C = 100 + 0.8Y Answer: transfer payment Email: bbcnoun@gmail.com Whatsapp: 08131667008