CUET Economics 2026 31st May Shift 1 PYQs

If all people in the economy increase the proportion of income they save, then total savings in the economy will not increase; it will either decline or remain unchanged. This phenomenon is known as_____.

If the marginal propensity to consume is 0.6. Then what will be the value of tax multiplier?

The equilibrium level of income depends on aggregate demand. Thus, if aggregate demand changes, the equilibrium level of income changes. This can happen in anyone or combination of the following situations:

(A) Change in autonomous consumption.

(B) Change in marginal propensity to consume.

(C) Income.

(D) Change in autonomous investment.

Choose the correct answer from the options given below: