CUET Economics - Value of MPS (Marginal Propensity to Save) is increased from 0.4 to 0.5. What would be the impact on Multiplier? | PYQs + Solutions

CUET Economics

Macro

Easy

The size of the multiplier would be increased.

The size of the multiplier would remain same.

Value of multiplier is undetermined with the given information.

The size of the multiplier would be decreased.

✅ Correct Option: 4

Related questions:

31 May Shift 1

Arrange the following statements in chronological order in respect to the increase in the proportion of income people save.

(A) Marginal propensity to consume decreases.

(B) The level of income decreases.

(D) The aggregate demand curve shifts downwards.

Choose the correct answer from the options given below:

27 May Shift 2

In macroeconomic theory, which is not justification for taking the price level as fixed.

29 May Shift 1

If Multiplier is 2.5,how much investment will be required to generate additional income of 1000 crores?

CUET Economics PYQs