Income of Raj increased by ₹200, MPC being 0.8, what will be increase in consumption?
Answer & explanation
Correct answer: option 2
The correct answer is Option 2: 160 rupees
MPC = \(\frac {∆C}{∆Y}\)
0.8 = \(\frac {∆C}{200}\)
∆C = 160
Income of Raj increased by ₹200, MPC being 0.8, what will be increase in consumption?
Correct answer: option 2
The correct answer is Option 2: 160 rupees
MPC = \(\frac {∆C}{∆Y}\)
0.8 = \(\frac {∆C}{200}\)
∆C = 160