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Aggregate Demand, Consumption & Saving · Question 34 of 60

Question 34

MediumOriginal question

Income rises by ₹400 crore and saving rises by ₹100 crore. The MPC is

0.25Correct answerYour answer0.75Correct answerYour answer0.8Correct answerYour answer4Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

MPS = 100 ÷ 400 = 0.25.
MPC = 1 − 0.25 = 0.75.

Concept: MPC from MPS
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsAPC, MPC, APS and MPS

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