What is autonomous investment in an economy?

Investment that depends on the level of income or interest rate.

Investment that is independent of income and interest rate.

Investment that is determined by government spending.

Investment that is influenced by changes in consumer behavior.

Which of the following is a characteristic of induced investment?

It is not influenced by changes in income or interest rate.

It remains constant regardless of economic conditions.

It increases as national income rises.

It is completely unrelated to the level of employment.

What is the relationship between autonomous investment and income?

Autonomous investment decreases as income increases.

Autonomous investment increases as income increases.

There is no relationship between autonomous investment and income.

Autonomous investment is not affected by changes in income.

What determines induced investment in the economy?

The marginal efficiency of capital and the rate of interest.

The level of international trade.

What is the principle of effective demand?

The principle that government spending drives economic growth.

The principle that aggregate supply determines income.

The principle that cost must not exceed receipt in economic activities.

The principle that consumer behavior is the main driver of economic activity.

What is the relationship between consumption and income in the consumption function?

Consumption is independent of income.

Consumption decreases as income increases.

Consumption increases as income increases.

Consumption is inversely proportional to income.

What is the multiplier effect in economics?

The effect of government spending on investment.

The effect of changes in the interest rate on consumer spending.

The effect of changes in aggregate demand on the level of income.

The effect of changes in exchange rates on international trade.

What is the equilibrium level of output in an economy?

The level of output where aggregate supply exceeds aggregate demand.

The level of output where planned spending equals planned output.

The level of output where consumption is at its maximum.

The level of output where government spending equals taxation.

The Investment Function- 1 Free MCQ Practice Test with Solutions

	Macro Economics 59 videos\|61 docs\|29 tests

	Macro Economics 59 videos\|61 docs\|29 tests

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