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      Question

      The Keynesian multiplier effect posits that A. an

      initial increase of government B. spending can lead to a disproportionate larger increase in C. aggregate demand, provided certain assumptions regarding D. leakages and marginal propensities hold true E. Given below is a sentence divided into five parts. One of the parts is emboldened and the part is erroneous i.e it contains a grammatical error. You need to find one more part from the options given below that contains the error.
      A The Keynesian multiplier effect posits that Correct Answer Incorrect Answer
      B spending can lead to a disproportionate larger increase in Correct Answer Incorrect Answer
      C aggregate demand, provided certain assumptions regarding Correct Answer Incorrect Answer
      D leakages and marginal propensities hold true Correct Answer Incorrect Answer
      E All are incorrect Correct Answer Incorrect Answer

      Solution

      We need an adverb ‘disproportionately’ to define the adjective ‘larger’. We don’t require the adjective ‘disproportionate’. In the emboldened part ‘increase of’ should be replaced with ‘increase in’.

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