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 = 600 + 0.8Y. If disposable income is INR 3,000, what is the level of consumption?

Option 1: INR 1,800
   

Option 2: INR 3000
   

Option 3: INR 4,200

Option 4: INR 4,800

Question : The average propensity to consume (APC) is 0.75. If disposable income is INR 6,000, what is the level of consumption?

Option 1: INR 4,000
    

Option 2: INR 4,500
    

Option 3: INR 6,500

Option 4: INR 8,000

Question : The marginal propensity to consume (MPC) is defined as the:

Option 1: Change in consumption divided by the change in income
  

Option 2: Change in income divided by the change in consumption
 

Option 3: Change in saving divided by the change in consumption

Option 4: Change in consumption divided by the change in saving

Question : The marginal propensity to consume (MPC) is 0.8. If there is an autonomous increase in investment spending of INR 1,500, what will be the change in equilibrium income?

Option 1: INR 1,200
    

Option 2: INR 1,500
   

Option 3: INR 7,500

Option 4: INR 6,000