In an economy, out of every additional £1 of national income, 10p is saved, 20p is paid in taxation, and 10p is spent on imports from abroad.
Which one of the following is the correct size of the national income multiplier?
0.400.400.40
1.671.671.67
2.502.502.50
5.005.005.00
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.