Question : An increase in investment by Rs.500 leads to increase in national income by Rs.2000 crore. Calculate marginal propensity to consume.

Option 1: 5

Option 2: 4

Option 3: 3

Option 4: 5

Question : An increase in investment by Rs.200 leads to increase in national income by Rs.1400 crore. Calculate marginal propensity to consume.

Option 1: 0.45

Option 2: 0.35

Option 3: 0.85

Option 4: 0.65

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, the marginal propensity to consume is 0.75. If the investment increases by Rs.2000 crore, calculate the total increase in income.

Option 1: 5000

Option 2: 6000

Option 3: 7000

Option 4: 8000

Question : As a result of increase in investment by Rs.150 crore, national income increases by Rs.600 crore. Calculate marginal propensity to save.

Option 1: 0.35

Option 2: 0.25

Option 3: 0.65

Option 4: 0.75