Economics (AS & A Level) · Oct / Nov 2023 · Paper 32 · Question 17
9708The circular flow of income
The table shows the marginal propensity to consume (MPC), marginal propensity to save (MPS), marginal rate of taxation (MRT) and marginal propensity to import (MPM) for a four-sector economy. | | value | |---|---| | MPC | 0.5 | | MPS | 0.2 | | MRT | 0.2 | | MPM | 0.1 | What is the size of the multiplier?
- A1
- B2
- C5
- D10
As printed in the paper
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Correct answer: B. 2
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