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

Among the following, what is assumed as the appropriate justification for taking the price level as fixed?

2 June Shift 1

When income is more than consumption, then value of Average Propensity to Save (APS) is.

28 May Shift 1

Arrange the following steps of determination of equilibrium income in chronological order if

C = 40 + 0.8Y, I = 10.

(A) Y = C + I

(B) 0.2Y = 50

(D) Y = 250

Choose the correct answer from the options given below:

CUET Economics PYQs