Question

Income rises from ₹ 50,000 to ₹ 60,000, consumption increases from ₹ 40,000 to ₹ 48,000. In this situation, what will be the value of Marginal Propensity to Consume (MPC)?

विकल्प

• 0.80

• 0.20

• 0.10

• 0.90

Answer 1

0.80

Explanation:

MPC = `(Δ"C")/(Δ"Y")`

= `(8,000)/(10,000)`

= 0.80