In an Economy, the value of multiplier is 4 times, and autonomous consumption is ₹30 crore. The relevant consumption function for this economy would be :

C= 30 + 0.75 y

The correct answer is option (1) : C= 30 + 0.75 y

The relevant consumption function for this economy can be determined from the multiplier (k) and the autonomous consumption $(C_0$) using the formula :  $k=\frac{1}{1-c}$

where c is the marginal propensity to consume.

Thus, $4=\frac{1}{1-c}$

4 (1 - c) = 1

c=3/4=.75

Thus, MPC (c)= 0.75

The consumption function is then :

$C=C_0+cY$

Substituting the values :

$C= 30+\frac{3}{4Y}$

Therefore, the relevant consumption function for this economy is :

$C= 30+0.75Y$