Skip to content
MathsGenie logo
Quick links
Open app

Course home

  1. A Level
  3. Economics Edexcel A
  5. Question bank

2.4.4 The multiplier

EasyMedium
12345678910111213141516171819202122232425
Question 14

In a hypothetical economy, the government estimates that for every additional £100 of national income generated:

  • £5 is saved by households,
  • £12 is taken in taxation,
  • £8 is spent on imported goods and services.

Which one of the following is the correct size of the national income multiplier?

0.250.250.25

1.331.331.33

4.004.004.00

5.005.005.00

2.4.4 The multiplier Questions

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