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.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 : 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 : An economy, the equilibrium level of income is Rs.12500. The ratio of marginal propensity to consume and marginal propensity to save is 4:1. Calculate the additional investment needed to reach a new equilibrium level of income of Rs.20,000 crore.

Option 1: 600

Option 2: 800

Option 3: 1200

Option 4: 1000