Q6 of 25 Page 4

Differentiate between ex-ante and ex post-investment.



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4

Define induced investment.

 5

The sum total of APC and APS is always equal to one, even when APC >1. Is it true?

 7

Can the average propensity to consume be greater than one? Explain with the reason.

 8

Explain ‘Paradox of Thrift’.