Use the following information for Q 26 and Q 27 Income (Y) in crore Consumption (C) in crore 0 100 100 150 200 225 300 300 400 375 500 400 Calculate…

CA Foundation · Business Economics · PYQS · May 2026
Use the following information for Q 26 and Q 27 Income (Y) in crore Consumption (C) in crore 0 100 100 150 200 225 300 300 400 375 500 400 Calculate the marginal propensity to consume when the income changes from ₹ 300 crores to ₹ 400 crores.
(A) A. 1.00
(B) B. 0.50
(C) C. 0.75
(D) D. 0.25

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. 0.75

Topics: Determination of National Income

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