During a financial review of the island economy of Elysia, economists determined that for every additional unit of national income generated, 8% is saved, 15% is collected in taxes, and 17% is spent on imports from abroad.
Calculate the value of the national income multiplier for Elysia, showing your working.
75 exam-style questions on Edexcel A A Level Economics 2.4 National income, covering 2.4.1 National income, 2.4.2 Injections and withdrawals, 2.4.3 Equilibrium levels of real national output, and 2.4.4 The multiplier. Each one has a worked solution and a mark scheme showing where the marks go.