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2.4.4 The multiplier

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Question 11

Rural Connectivity Initiative

The government has allocated a £280 million fiscal package to deploy ultra-fast fiber-optic broadband across isolated rural communities, partnering with telecommunications firms to install high-capacity cabling.

Using this example, explain how the multiplier process leads to an increase in aggregate demand.

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2.4.4 The multiplier Questions

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