When the marginal propensity to consume is given as 0.5. What is the tax multiplier? Option 1: 2 Option 2: -2 Option 3: 3 Option 4: -1

The answer is '-1'. View full solution:

CUET Economics - When the marginal propensity to consume is given as 0.5. What is the tax multiplier? | PYQs + Solutions

CUET Economics 2025 3 June Shift 2

Macro

Medium

-2

-1

✅ Correct Option: 4

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Match List-I with List-II

List-I	List-II
(A) Marginal propensity to consume	(I) Change in savings per unit change in income.
(B) Marginal propensity to save	(II) Savings per unit of income.
(C) Average propensity to consume	(III) Change in consumption per unit change in income.
(D) Average propensity to save	(IV) Consumption per unit of income.

Choose the correct answer from the options given below:

CUET Economics 2025 3 June Shift 2 PYQs

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