In 2023, the Treasury of the United Kingdom estimated the marginal propensity to consume (MPC) of households to be 0.875. In the Autumn Statement, the Chancellor announced an additional £14.5 billion capital investment funding package aimed at expanding the national fiber-optic broadband network.
Calculate the total increase in national income resulting from this £14.5 billion investment, assuming no other leakages.
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.