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CBSE 2023 Class 12 Economics Delhi Set 3

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Question : 1 of 1
Marks: +1, -0
SECTION-A
(Macro Economics)
If a linear consumption curve takes a parallel shift downwards, the value of investment multiplier will _____
Solution:  
(d) not change
Explanation: If linear consumption curve takes parallel shift downwards, there is change in autonomous consumption but no change in MPC. Investment multiplier depends upon MPC only. If there is no change is MPC then it leads to no change in investment multiplier.
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