Question

Suppose for an economy, autonomous consumption stands as ₹100 crore and total consumption is ₹130 crores. The value of induced consumption would be ....... crores.

• A. 30
• B. 80
• C. 100
• D. 130

Hint:

Induced consumption refers to the portion of consumption that changes with the level of income or output in the economy.

Answer 1

The Correct Option is A

Induced consumption is the difference between total consumption and autonomous consumption. In this case, it is calculated as: $130 - 100 = 30 \text{ crores.} $