Economics (AS & A Level) · Oct / Nov 2023 · Paper 33 · Question 20
9708The circular flow of income
Other things remaining equal, what will reduce the level of national income in an economy?
- Aa fall in planned savings
- Ba fall in the marginal propensity to import
- Can increase in the average propensity to consume
- Da reduction in the level of defence expenditure
As printed in the paper
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Correct answer: D. a reduction in the level of defence expenditure
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