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 ( $M P M$ ). 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.

[2]

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 ( $M P M$ ). 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.

[2]

2.4 National income

Question 42

2.4 National income Questions

2.4 National income

Question 42

2.4 National income Questions