Which of the following is not a reason for excess demand ? Option 1: Reduction in Taxes Option 2: Fall in propensity to consume Option 3: Increase in investments Option 4: Increase in government spending

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

CUET Economics - Which of the following is not a reason for excess demand ? | PYQs + Solutions

CUET Economics

Macro

Medium

Reduction in Taxes

Fall in propensity to consume

Increase in investments

Increase in government spending

✅ Correct Option: 2

Related questions:

29 May Shift 2

In which year, the book 'The Economic Consequences of the Peace' was written by John Maynard Keynes.

30 May Shift 2

If all the people in the economy increase the proportion of income they save, the total value of savings in the economy will not increase – it will either decline or remain unchanged. This situation is known as...................

28 May Shift 2

Determination of income and employment of a two-sector model is done by:

(A) Ex-ante aggregate demand for final goods.

(B) Ex-post aggregate demand for final goods.

(D) Constant rate of interest.

Choose the correct answer from the options given below:

CUET Economics PYQs

Keyboard Shortcuts