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2.4.4 The multiplier

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Question 17

Following a shift in domestic consumer preferences towards locally produced goods, an economy experiences a decrease in its marginal propensity to import (MPMMPMMPM). Assuming all other components of the marginal propensity to withdraw remain unchanged, explain the likely effect of this decrease on the value of the multiplier.

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2.4.4 The multiplier Questions

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