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 : 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 : 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 : 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 : 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