Skip to content
MathsGenie logo
Quick links
Open app

Course home

  1. A Level
  2. Economics Edexcel A
  3. Question bank

2.4.4 The multiplier

EasyMedium
12345678910111213141516171819202122232425
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.

[4]

2.4.4 The multiplier Questions

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