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Aggregate demand and aggregate supply

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Question 10

In an open economy, a government injection of £8 billion results in a total increase in national income of £20 billion. If the marginal propensity to save (MPSMPSMPS) is 0.22 and the marginal rate of taxation (MRTMRTMRT) is 0.11, what is the marginal propensity to import (MPMMPMMPM)?

0.070.070.07

0.270.270.27

0.670.670.67

0.730.730.73

Aggregate demand and aggregate supply Questions

  1. A Level
  2. /Economics
  3. /Aggregate demand and aggregate supply