The ratio of increase in income to increase in investment is termed as Option 1: Marginal propensity to save. Option 2: Marginal propensity to consume. Option 3: Marginal propensity to invest. Option 4: Investment Multiplier.

The answer is 'Investment Multiplier.'. View full solution:

CUET Economics - The ratio of increase in income to increase in investment is termed as | PYQs + Solutions

CUET Economics 2025 26 May Shift 2

Macro

Medium

Marginal propensity to save.

Marginal propensity to consume.

Marginal propensity to invest.

Investment Multiplier.

✅ Correct Option: 4

Related questions:

28 May Shift 1

Arrange the following as per the theory of the 'Paradox of Thrift':

(A) Marginal Propensity to consume decreases.

(B) Amount of savings decreases.

(D) Equilibrium level of income decreases.

Choose the correct answer from the options given below:

29 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Ex-post investment	(I) AD function shifts upward
(B) Investment multiplier	(II) Planned Investment + Unplanned Investment
(C) Ex ante aggregate demand	(III) 1/1- MPC
(D) Owing to increase in investment	(IV) $I = c + cY$

Choose the correct answer from the options given below:

CUET Economics 2022 Slot 4

Identify the statement that stands true during deficient demand :

(A) Actual output falls short of potential output

(B) Potential output falls short of actual output

(D) Expected demand is less than actual demand

Choose the correct answer from the options given below :