There is an increase in the national income by ₹ 2,000 crores when there is an increase in investments by ₹ 1,600 crores. Calculate the marginal…

CA Foundation · Business Economics · PYQS · May 2026
There is an increase in the national income by ₹ 2,000 crores when there is an increase in investments by ₹ 1,600 crores. Calculate the marginal propensity to consume.
(A) A. 0.80
(B) B. 0.50
(C) C. 0.20
(D) D. 0.40

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. 0.20

Topics: Determination of National Income

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