Question

04.
One day, the teacher had a discussion on a special subject in the class & he asked the
students to prepare a project on that very subject. The teacher told that there was hardly
any country in the world which could itself produce all the things of its requirement, it has to
get the help of other countries & this is possible only when there is full freedom of import-
export of things & services & when there is free flow of information & technology & the
people can freely go from one country to the other. India also admitted this truth & gave full
freedom of different activities
done with the foreign countries. This resulted in a big
advantage to India itself and several other countries also. To which of the following factors is
the above event related?
(1)
(a) Demonetisation (b) Liberalisation (C) Privatisation (d) Globalisation​

Answer 1

Answer:

In the diagram, income is measured horizontally and consumption is measured vertically. ... “Thus the consumption function measures not only the amount spent on consumption but also the amount saved. This is because the propensity to save is merely the propensity not to consume.