Question : The equilibrium level of income in an economy is Rs. 3000 crore. The autonomous consumption expenditure is equal to Rs.250 crore and investment expenditure is Rs.1000 crore. Calculate marginal propensity to save.

Option 1: 0.42

Option 2: 0.58

Option 3: 0.32

Option 4: 0.65

Question : _____________________ is defined as ratio of change in consumption to change in total income

Option 1: Marginal propensity to consume

Option 2: Marginal propensity to save

Option 3: Average propensity to consume

Option 4: Average propensity to save.

Question : In an economy, marginal propensity to consume is 0.80. If investment expenditure is increased by Rs.400 crore, calculate the total increase in income.

Option 1: 1000

Option 2: 2000

Option 3: 1400

Option 4: 1600

Question : In an economy, investment has increased by Rs.250 crore. If marginal propensity to consume is 3/5, calculate increase in national income.

Option 1: 500

Option 2: 600

Option 3: 625

Option 4: 800

Question : Given that national income is Rs.100 crore and consumption expenditure is Rs.72 crore, When income rises to Rs. 200 crore and consumption expenditure to Rs.108 crore, what will be the average propensity to consume and a marginal propensity to save?

Option 1: 0.28

Option 2: 0.72

Option 3: 0.64

Option 4: 0.65