Question : Find national income from the following:
Autonomous consumption = Rs. 50
MPC= 0.80.
Investment = 200
Option 1: 1200
Option 2: 1000
Option 3: 1250
Option 4: 2000
Correct Answer: 1250
Solution : C=50+0.80Y
I= 200
Y= C+I
Y= 50+0.80Y+200
0.20Y= 250
Y= 1250 crore
Hence, Option C is correct.




