Question : The saving function is given by S = 0.4Y - 300. If disposable income is INR 2,500, what is the level of saving?

Option 1: INR 400
 

Option 2: INR 500
   

Option 3: INR 700

Option 4: INR 1,000

Question : The saving function is given by S = 0.3Y - 200. If disposable income is INR 1,500, what is the level of saving?

Option 1: INR 250
  

Option 2: INR 500
   

Option 3: INR 800

Option 4: INR 950

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 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 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