If national income increases from ₹ 500 crores to ₹ 2,500 crores due to an increase in investment of ₹ 200 crores, what will be the value of the…

CA Foundation · Business Economics · PYQS · September 2025
If national income increases from ₹ 500 crores to ₹ 2,500 crores due to an increase in investment of ₹ 200 crores, what will be the value of the Marginal Propensity to Consume (MPC)?
(A) A. 0.90
(B) B. 0.85
(C) C. 0.75
(D) D. 0.95

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. 0.90

Topics: Determination of National Income

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