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)

False. Explanation: When Y = 0, autonomous consumption is 50. At zero level of Y, saving(S) is equal.

When consumption function is: C = 50 + 0.6Y, saving will be equal…

Purchase of government securities by the central bank in the open market is an appropriate policy to check depression in the economy. (True/ False)

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When in order to buy 1 US dollar ₹ 65 are needed instead of ₹ 60 earlier, domestic currency shows appreciation. (True/ False)

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Capital receipts do not reduce assets of the government. (True/ False)

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Giving reasons, state whether the following statements are true or false:
Average propensity to save is always greater than zero.

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

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Money supply in the economy includes only notes and coins issued by the central bank. (True/ False)

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Giving reason, state whether the following statement are true or false:
Butter is only a final product.

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In macroeconomics, aggregate demand refers to planned purchase of goods and services during a year. (True/ False)

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Microeconomics and Macroeconomics are not independent of each other.

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

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