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2.4 National income

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Question 42

Following a shift in domestic consumer preferences towards locally produced goods, an economy experiences a decrease in its marginal propensity to import (MPMMPMMPM). Assuming all other components of the marginal propensity to withdraw remain unchanged, explain the likely effect of this decrease on the value of the multiplier.

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Markscheme

2.4 National income Questions

  1. A Level
  2. /Economics
  3. /2.4 National income

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.

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