Economics (AS & A Level) · May / June 2026 · Paper 34 · Question 18
9708The circular flow of income
What will reduce the value of the investment multiplier?
- Alower marginal propensity to import
- Bautomatic stabilisers
- Ca reduction in marginal tax rates
- Da reduction in the level of unemployment benefits
As printed in the paper
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Correct answer: B. automatic stabilisers
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