If MPS in the economy increases, what will be the effect on MPC of economy ? Option 1: Supply increases Option 2: MPC decreases Option 3: MPC increases Option 4: MPC will neither increase nor decrease

The answer is 'MPC decreases'. View full solution:

CUET Economics - If MPS in the economy increases, what will be the effect on MPC of economy ? | PYQs + Solutions

CUET Economics

Macro

Easy

Supply increases

MPC decreases

MPC increases

MPC will neither increase nor decrease

✅ Correct Option: 2

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______ level of income is that level of income where all the factors of production are fully employed in the production process.

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The equilibrium level of output may be more or less than the full employment level of output. If it is less than the full employment of output, it is due to the fact that demand is not enough to employ all factors of production. This situation is called ......

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Match List-I with List-II

List-I	List-II
(A) Average Propensity to Consume	(I) It is the savings per unit of income
(B) Marginal Propensity to Consume	(II) It is the consumption per unit of income
(C) Average Ppropensity to Save	(III) It is the change in savings per unit change in income
(D) Marginal Propensity to Save	(IV) It is the change in consumption per unit change in income.

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