Question : The average propensity to consume (APC) is 0.6. If disposable income is INR 5,000, what is the level of consumption?

Option 1: INR 2,500
 

Option 2: INR 3,000
  

Option 3: INR 6,000

Option 4: INR 8,333.33

Question : The consumption function is given by C = 500 + 0.75Y. If disposable income is INR 4,000, what is the level of consumption?

Option 1: INR 3,500
  

Option 2: INR 4,500
   

Option 3: INR 6,000

Option 4: INR 7,500

Question : The marginal propensity to consume (MPC) is 0.9. If disposable income increases by INR 2,000, what will be the increase in consumption?

Option 1: INR 1,800
  

Option 2: INR 1,600
    

Option 3: INR 2,000

Option 4: INR 2,200

Question : The marginal propensity to consume (MPC) is 0.75. If there is an autonomous increase in investment spending of INR 1,000, what will be the change in equilibrium income?

Option 1: INR 750
    

Option 2: INR 1,000
   

Option 3: INR 1,333.33

Option 4: INR 4,000

Question : __________________________ refers to the consumption expenditure to the corresponding level of income.
 

Option 1: Average propensity to consume
 

Option 2: Marginal propensity to consume
 

Option 3: Average propensity to save
 

Option 4: None of the above.