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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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.