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2.4.4 The multiplier

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Question 11

In 2021, the Canadian Department of Finance estimated the marginal propensity to consume of Canadian consumers to be 0.6. Later that year, the federal government announced a $22 billion investment programme into nationwide high-speed rail infrastructure.

Using the information above, calculate the total increase in national income resulting from the $22 billion investment.

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2.4.4 The multiplier Questions

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