If the entire additional income is saved in an economy, the value of investment multiplier will be Option 1: 0 Option 2: 1 Option 3: More than 1 but finite. Option 4: Infinite.

The answer is '1'. View full solution:

CUET Economics - If the entire additional income is saved in an economy, the value of investment multiplier will be | PYQs + Solutions

CUET Economics 2025 26 May Shift 2

Macro

Medium

More than 1 but finite.

Infinite.

✅ Correct Option: 2

Related questions:

21 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Effective demand	(I) National Income
(B) Say's law of markets	(II) Aggregate demand exceeds aggregate supply at full employment
(C) Inflationary gap	(III) Supply creates its own demand
(D) Aggregate supply	(IV) Aggregate demand at equilibrium level

Choose the correct answer from the options given below:

30 May Shift 1

In an Economy , total savings are rs. 2000 crores and the ratio of average propensity to save and average propensity to consume is 2: 7. Calculate the level of income in the economy?

13 May Shift 2

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 26 May Shift 2 PYQs

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