Measure the level of ex-ante aggregate demand when autonomous investment and consumption expenditure (A) is Rs 80 crores, and MPC is 0.75.

320 crore

The correct answer is Option (3) → 320 crore

We are given:
Autonomous expenditure (A) = ₹80 crores
Marginal Propensity to Consume (MPC) = 0.75

At equilibrium, $\text{AD}=Y$

$\text{Y}=\; [1\; /\; (1\; -\; MPC)]\; *\; A$

Multiplier= 1 / (1 - MPC) = 1/0.25 = 4

Y= 4 * 80 = 320