When income rises by Rs.10, then induced consumption will rises by? Option 1: Average propensity to consume (APC). Option 2: Marginal propensity to consume (MPC). Option 3: MPC times rise in income. Option 4: Marginal propensity to save (MPS).

The answer is 'MPC times rise in income.'. View full solution:

CUET Economics - When income rises by Rs.10, then induced consumption will rises by? | PYQs + Solutions

CUET Economics 2026 19th May Shift 2

Macro

Easy

Average propensity to consume (APC).

Marginal propensity to consume (MPC).

MPC times rise in income.

Marginal propensity to save (MPS).

✅ Correct Option: 3