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Economics (AS & A Level) · May / June 2026 · Paper 33 · Question 16

9708The circular flow of income

What would increase the value of the multiplier?

  1. Aa decrease in the marginal propensity to consume
  2. Ba decrease in the marginal rate of tax
  3. Can increase in the marginal propensity to import
  4. Dan increase in the marginal propensity to save

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Correct answer: B. a decrease in the marginal rate of tax

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