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Thursday, January 26, 2012

::: vuaskari.com ::: ECO 401

Question No: 21    ( Marks: 1 )    - Please choose one

 An individual whose attitude towards risk is known as:

 

       ► Risk averse.

       ► Risk loving.

       ► Risk neutral.

       ► None of the given options.


 Assume that there is no government or foreign sector, if the marginal propensity to save (MPS) is 0.2, then the value of saving multiplier will be equal to:

       ► 0.80

       ► 1.20

       0.50

       ► 1.25

M=1/1-mpc  =1/mps


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