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2.4.4 The multiplier

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Question 10

According to the Ministry of Finance in a European economy, the nation's marginal propensity to consume (MPC) is estimated to be 0.75.

Using the information above, calculate the total reduction in this economy's GDP from a fall in government spending of €45 million.

[4]
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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