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CUET
Economics
Macro Economics: Determination of Income and Employment
Income of Raj increased by ₹200, MPC being 0.8, what will be increase in consumption?
40 rupees
160 rupees
180 rupees
200 rupees
MPC = \(\frac {∆C}{∆Y}\) 0.8 = \(\frac {∆C}{200}\) ∆C = 160
