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2.4.4 The multiplier

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Question 6

In a quarterly economic bulletin, analysts estimated that the marginal propensity to consume (MPC) in an economy was 0.875.

Calculate the total increase in aggregate demand resulting from an injection of £85 million of private sector investment.

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Markscheme

2.4.4 The multiplier Questions

  1. A Level
  2. /Economics
  3. /2.4.4 The multiplier

43 exam-style questions on Edexcel A A Level Economics 2.4.4 The multiplier. Each one has a worked solution and a mark scheme showing where the marks go.

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