Suppose in a hypothetical economy, the income rises from` R.s.500 crores to ` R.s.600 crores. As a result, the consumption expenditure rises from` R.s.400 crores to ` R.s.500 crores. Marginal propensity to consume in such a case would be...... . (Choose the correct alternative)
A. 0.8
B. 0.4
C. 1.0
D. 0.6
Answer:C
Suppose in a hypothetical economy, the income rises from` R.s.500 crores to ` R.s.600 crores. As a result, the consumption expenditure rises from` R.s.400 crores to ` R.s.500 crores. Marginal propensity to consume in such a case would be...... . (Choose the correct alternative)
A. 0.8 B. 0.4 C. 1.0 D. 0.6