CUET Economics - If Multiplier is 2.5,how much investment will be required to generate additional income of 1000 crores? | PYQs + Solutions

CUET Economics 2025 29 May Shift 1

Macro

Medium

1000 crores

400 crores

100 crores

250 crores

✅ Correct Option: 2

Related questions:

CUET Economics 2024 Slot 1

It is market where economic agents freely exchange their own goods:

2 June Shift 1

Match List-I with List-II

List-I	List-II
(A) Marginal Propensity to Consume	(I) C/Y
(B) Marginal Propensity to Save	(II) ΔC/ ΔY
(C) Average Propensity to Save	(III) S/Y
(D) Average Propensity to Consume	(IV) ΔS/ ΔY

Choose the correct answer from the options given below:

15 May Shift 1

Suppose at the initial equilibrium of $Y^*$ , there is an exogenous or autonomous shift in peoples' expenditure pattern – they suddenly become more thrifty.

What will be the sequential effect of the above on the economy?

(A) The sudden decline in MPC will imply a decrease in aggregate consumption spending and hence in aggregate demand.

(B) There emerges an excess supply in the economy, but that would mean a reduction in factor payments in the next round and hence a reduction in income.

(D) MPS of the economy increases, and hence MPC falls.

Choose the correct answer from the options given below:

CUET Economics 2025 29 May Shift 1 PYQs

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