| Year | Household savings ratio, % |
|---|---|
| 2012 | 9.8 |
| 2013 | 9.2 |
| 2014 | 8.5 |
| 2015 | 7.9 |
| 2016 | 7.2 |
| 2017 | 6.5 |
| 2018 | 5.8 |
| 2019 | 6.1 |
| 2020 | 18.2 |
| 2021 | 15.4 |
| 2022 | 10.1 |
| 2023 | 4.5 |
With reference to the table above, explain the likely effect of a fall in the marginal propensity to save (MPS) on the level of real GDP. Refer to the multiplier in your answer.
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.