An economy has a marginal propensity to save of 0.15, a marginal propensity to tax of 0.20, and a marginal propensity to import of 0.15.
Which one of the following is the correct size of the multiplier?
0.50.50.5
1.51.51.5
2.02.02.0
5.05.05.0
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.