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National income

From Paper 2: The national and global economy
2(a)2 marks
The marginal propensity to withdraw is 0.4. Calculate the size of the multiplier and the final change in national income from a £10 billion increase in investment.
From Paper 2: The national and global economy
2(b)3 marks
Explain why the actual multiplier effect might be smaller than predicted.
Score 0 / 5 · 0 of 2 marked

This paper is written by Plasmo in the style of the Edexcel A-Level Economics exam. It is not a past paper and is not produced or endorsed by the exam board.

National income Exam Questions: Edexcel A-Level Economics | Plasmo