An increase in government spending will lead to _________ Option 1: Increase in consumption times multiplier. Option 2: Decrease in income times multiplier Option 3: Increase in income times multiplier. Option 4: Increase in Tax

The answer is 'Increase in income times multiplier.'. View full solution:

CUET Economics - An increase in government spending will lead to _________ | PYQs + Solutions

CUET Economics 2026 12th May Shift 1

Macro

Easy

Increase in consumption times multiplier.

Decrease in income times multiplier

Increase in income times multiplier.

Increase in Tax

✅ Correct Option: 3