Economics (AS & A Level) · Oct / Nov 2021 · Paper 31 · Question 30

In an economy operating below full employment, which combination of changes will definitely result in an increase in national income?

1. Aa fall in the rate of taxation together with a rise in the saving rate
2. Ba rise in government expenditure together with a fall in the propensity to import
3. Ca rise in investment expenditure together with a rise in the rate of taxation
4. Da rise in the propensity to save together with a rise in exports

As printed in the paper