According to ___________, if the marginal propensity to save in the economy increases, the total value of saving in the economy will not increase. Option 1: Demand Elasticity Option 2: Parametric Shift Option 3: Ex-ante Investment Option 4: Paradox of Thrift

The answer is 'Paradox of Thrift'. View full solution:

CUET Economics - According to ___________, if the marginal propensity to save in the economy increases, the total value of saving in the economy will not increase. | PYQs + Solutions

CUET Economics 2025 28 May Shift 1

Macro

Easy

Demand Elasticity

Parametric Shift

Ex-ante Investment

Paradox of Thrift

✅ Correct Option: 4

Related questions:

15 May Shift 1

Given that in an economy, consumption function is

C = 80 + 0.80Y and autonomous investment (I) = 120,

Match List-I with List-II

List-I	List-II
(A) Equilibrium level of income	(I) 400
(B) Break-even point	(II) 120
(C) Investment multiplier	(III) 5
(D) Value of savings at equilibrium	(IV) 1000

Choose the correct answer from the options given below:

26 May Shift 2

The ratio of increase in income to increase in investment is termed as

30 May Shift 2

Which parameter does not determine the income and employment in the economy.