________ is the ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure of the economy. Option 1: Marginal Propensity to Consume. Option 2: Investment multiplier. Option 3: Consumption Multiplier. Option 4: Marginal Propensity to Save.

The answer is 'Investment multiplier.'. View full solution:

CUET Economics - ________ is the ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure of the economy. | PYQs + Solutions

CUET Economics 2025 27 May Shift 2

Macro

Easy

Marginal Propensity to Consume.

Investment multiplier.

Consumption Multiplier.

Marginal Propensity to Save.

✅ Correct Option: 2

Related questions:

CUET Economics 16 May Shift 1

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.

Choose the correct answer from the options given below:

CUET Economics 28 May Shift 1

Arrange the following as per the theory of the 'Paradox of Thrift':

(A) Marginal Propensity to consume decreases.

(B) Amount of savings decreases.

(D) Equilibrium level of income decreases.

Choose the correct answer from the options given below:

CUET Economics 31 May Shift 1

How much consumption will increase when income increases by Rs. 5000 at given marginal propensity to consume of 0.60.