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Economics (AS & A Level) · Oct / Nov 2023 · Paper 31 · Question 17

9708The circular flow of income

What might decrease if a closed economy with a government sector decides to allow international trade?

  1. Acomponents of aggregate expenditure
  2. Bnumber of injections into the circular flow of income
  3. Cnumber of leakages from the circular flow of income
  4. Dvalue of the economy's multiplier

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Correct answer: D. value of the economy's multiplier

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