The size of investment multiplier (k) depends on:- Option 1: Average propensity to consume Option 2: Average propensity to save Option 3: Marginal propensity to consume Option 4: Saving function

The answer is 'Marginal propensity to consume'. View full solution:

CUET Economics - The size of investment multiplier (k) depends on:- | PYQs + Solutions

CUET Economics

Macro

Easy

Average propensity to consume

Average propensity to save

Marginal propensity to consume

Saving function

✅ Correct Option: 3

Related questions:

29 May Shift 2

Which one is not the component of a aggregate demand for final goods?

CUET Economics 2022 Slot 5

Match List - I with List - II.

List - I	List - II
(A) MPC (Marginal Propensity to Consume)	(I) $\frac{\Delta Y}{\Delta I}$
(B) MPS (Marginal Propensity to Save)	(II) $\frac{\Delta C}{\Delta Y}$
(C) K (Multiplier)	(III) C + I
(D) AD (Aggregate Demand)	(IV) $\frac{\Delta S}{\Delta Y}$

Choose the correct answer from the options given below :

CUET Economics 2023 Slot 3

Deficit Demand Occurs when :

(A) Equilibrium level of output is less than full employment level

(B) When AD < AS (Aggregate Demand less than Aggregate Supply)

(D) Demand is not enough to employ all factors of production

(E) Prices will decline in the long run

Choose the correct answer from the options given below :