In case National Income of an Economy increases from ₹200 crores to ₹250 crores and its savings increases from ₹50 crores to ₹70 crores. Identify Marginal propensity to consume.

0.2 0.4 0.6 0.8

0.6

The correct answer is Option (3) → 0.6 Change in Income = Rs 50 Cr Change in Saving = Rs 20 cr MPS=ΔS/ΔY       =20/50 = 0.4 MPC= 1- MPS       = 1 - 0.4 = 0.6​