Question : Using the consumption function, Calculate consumption at income level of 2500 crore, if autonomous consumption is 100 crore and 40% of additional income is consumed.
Option 1: 1000
Option 2: 1100
Option 3: 900
Option 4: 800

Question

Question : Using the consumption function, Calculate consumption at income level of 2500 crore, if autonomous consumption is 100 crore and 40% of additional income is consumed.

Option 1: 1000

Option 2: 1100

Option 3: 900

Option 4: 800

Team Careers360 · Accepted Answer

Correct Answer: 1100

Solution : MPC= 0.4

C= 100+0.4(2500)

C= 1100

Hence, Option B is correct.

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Question : Using the consumption function, Calculate consumption at income level of 2500 crore, if autonomous consumption is 100 crore and 40% of additional income is consumed.Option 1: 1000Option 2: 1100Option 3: 900Option 4: 800

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Question : Using the consumption function, Calculate consumption at income level of 2500 crore, if autonomous consumption is 100 crore and 40% of additional income is consumed.
Option 1: 1000
Option 2: 1100
Option 3: 900
Option 4: 800