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2.4 National income

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Question 8

Household Consumption in Canada, % of GDP, 2010–2022

YearHousehold consumption, % of GDP
201058.2
201158.0
201257.9
201358.1
201457.6
201557.2
201657.5
201757.8
201857.1
201956.8
202055.2
202156.1
202256.5

With reference to the table above, explain the likely effect of a rise in the marginal propensity to save (MPS) on the level of real GDP. Refer to the multiplier in your answer.

[4]

2.4 National income Questions

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