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2.4.4 The multiplier

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Question 24

In October 2022, a survey estimated that the marginal propensity to consume (MPC) in an economy was 0.75.

Calculate the total increase in aggregate demand from an increase in government spending of £120 million.

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2.4.4 The multiplier Questions

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