An economy has a marginal propensity to save of 0.15, a marginal propensity to tax of 0.20, and a marginal propensity to import of 0.15.
Which one of the following is the correct size of the multiplier?
A
0.50.50.5
B
1.51.51.5
C
2.02.02.0
D
5.05.05.0
Markscheme
2.4.4 The multiplier Questions
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.