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 income.
Option 1: 1600
Option 2: 1300
Option 3: 1400
Option 4: 1500

Question

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 income.

Option 1: 1600

Option 2: 1300

Option 3: 1400

Option 4: 1500

Team Careers360 · Accepted Answer

Correct Answer: 1600

Solution : $MPC= 0.75$

$K= \frac{1}{1-MPC}$

$K= \frac{1}{1-0.75}$

$K= 4$

$K= \frac{\Delta Income}{\Delta Investment}$

$4= \frac{\Delta Income}{4}$

${\Delta Income}= 1600\, crore$

$Hence, Option A\, is\, correct.$

Exams

Colleges

Predictors

Resources

Quick links

B.Tech CompanionUse Now Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

Exams

Colleges & Courses

Predictors

Resources

Exams

Colleges

Predictors & E-Books

Resources

Engineering Preparation

Medical Preparation

Law Preparation

MBA Preparation

Exams

Colleges

Resources

Exams

Colleges

Predictors & Articles

Resources

Exams

Colleges

Predictors

Resources

NEET CompanionUse NowYour one-stop Counselling package for NEET, AIIMS and JIPMER

Exams

Colleges

Upcoming Events

Resources

Exams

Colleges

Resources

Quick Links

Top Streams

Specializations

Resources

Top Providers

Exams

Colleges

Resources

Diploma Colleges

Exams

Colleges

Resources

Exams

Resources

Top Courses & Careers

Colleges

Exams

Upcoming Events

Resources

Other Exams

Exams

Colleges

Top Countries

Resources

Exams

Top Schools

Products & Resources

NCERT Study Material

Popular Searches

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 income.Option 1: 1600Option 2: 1300Option 3: 1400Option 4: 1500

Related Questions

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: 500Option 2: 800Option 3: 1000Option 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: 1000Option 2: 2000Option 3: 1400Option 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: 1500Option 2: 1400Option 3: 1300Option 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: 3000Option 2: 1500Option 3: 2000Option 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: 1100Option 2: 1200Option 3: 1300Option 4: 1400

Trending Articles/News

Sign In/Sign Up

Download Careers360 App

All this at the convenience of your phone

Scan and download the app

B.Tech CompanionUse Now
Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

NEET CompanionUse Now
Your one-stop Counselling package for NEET, AIIMS and JIPMER

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 income.
Option 1: 1600
Option 2: 1300
Option 3: 1400
Option 4: 1500

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