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

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The equilibrium level of output may be more or less than the full employment level of output. If it is less than the full employment of output, it is due to the fact that demand is not enough to employ all factors of production. This situation is called ......

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(C)	Value of Investment Multiplier	(III)	1 - APS
(D)	Marginal Propensity to Consume	(IV)	$\frac{\Delta C}{\Delta Y}$

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$C$
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CUET Economics 2025 29 May Shift 2 PYQs

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