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2.4.4 The multiplier

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Question 8

In a study of a maritime port authority's economic footprint, analysts estimate that the marginal propensity to consume (MPC) within the local territory is 1316\frac{13}{16}1613​.

The port authority plans an initial capital expansion project costing £45 million.

Calculate the total increase in aggregate demand generated within the local territory by this expansion project.

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2.4.4 The multiplier Questions

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