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. 400 leads to increase in national income by Rs. 2000 crore. Calculate marginal propensity to consume.

Option 1: 0.80

Option 2: 0.75

Option 3: 0.60

Option 4: 0.50

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

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