If the marginal propensity to consume is 0.6. Then what will be the value of tax multiplier? Option 1: \+ 0.25 Option 2: \- 0.25 Option 3: \+ 1.5 Option 4: \- 1.5

The answer is '\- 1.5'. View full solution:

CUET Economics - If the marginal propensity to consume is 0.6. Then what will be the value of tax multiplier? | PYQs + Solutions

CUET Economics 2025 29 May Shift 2

Macro

Medium

+ 0.25

- 0.25

+ 1.5

- 1.5

✅ Correct Option: 4

Related questions:

27 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Final goods market	(I) A + cY
(B) Consumers demand	(II) ΔY/ΔA
(C) Investment multiplier	(III) Ĉ + cY
(D) Linear equation	(IV) a + bX

Choose the correct answer from the options given below:

29 May Shift 1

Suppose in a hypothetical economy ,the income rises from ₹5000 crores to ₹6000 crores. As a result, the consumption expenditure rises from ₹4000 cores to ₹4600 crores. Then what will be the marginal propensity to consume?

22 May Shift 2

Aggregate demand for final goods consists which of the following?

(A) Ex-ante consumption.

(B) Ex-ante Investment.

(D) Effective demand.

Choose the correct answer from the options given below:

CUET Economics 2025 29 May Shift 2 PYQs

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