Question : In an economy, 75% of increased income is spent on consumption if Rs.4 crore are invested in a project, find out the increase in savings.

Option 1: 500

Option 2: 800

Option 3: 1000

Option 4: 400

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 : The value of consumption in an economy would be ____ if national income of the economy is 2000 crore and the ratio between APC and APS is 3:2.

Option 1: 1500

Option 2: 1400

Option 3: 1300

Option 4: 1200

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 consumption expenditure.

Option 1: 3000

Option 2: 1500

Option 3: 2000

Option 4: 1000

Question : The saving function of an economy is given as S=-40+0.5Y. Calculate the total increase in income if investment expenditure increases by Rs. 600 crore.

Option 1: 1100

Option 2: 1200

Option 3: 1300

Option 4: 1400