Introduction — Economics STD 12 Humanities & Commerce — Question

State whether the following statements are true or false. Give reasons for your answer:
When marginal propensity to consume is greater than marginal propensity to save, the value of investment multiplier will be greater than 5.

Are the following statements true or false? Give reasons.
Fiscal deficit is non-inflationary.

Decrease in demand for foreign currency leads to currency depreciation. (True/ False)

Giving reasons, state whether the following statements are true or false.
M includes time deposits of commercial banks.

When consumption function is: C = 50 + 0.6Y, saving will be equal to -30 Y = 0 to the negative expression of C. Hence, when C - 50, S will be equal to -50. (True/ False)

Giving reason, state whether the following statement are true or false.
Unilateral transfers received from abroad will be recorded as a credit item of BOP on current account.

Giving reasons, state whether the following statement are true or false;
Value of average propensity to save can never be less than zero.

Stock of money with the government is a part of money supply. (True/ False)

Giving reasons, state whether the following statements are true or false.
Real GDP includes domestic income at current prices.

Both primary and secondary deposits are demand deposits. (True/ False)