Skip to content

Course home

Sign up

The multiplier and the accelerator

EasyMediumHard
12345678910
Question 5

Which of the following combinations of macroeconomic changes is most likely to cause a decrease in the size of an economy's national income multiplier?

A

A rise in the household saving ratio and a reduction in import tariffs that increases the marginal propensity to import (MPMMPMMPM)

B

A decrease in the basic rate of income tax and a fall in the household saving ratio

C

An increase in the marginal propensity to consume domestic goods (MPCdMPCdMPCd) alongside a reduction in corporate tax rates

D

A rise in business confidence that stimulates investment via the accelerator effect, alongside a decrease in the marginal propensity to import (MPMMPMMPM)

Markscheme

The multiplier and the accelerator Questions

  1. A Level
  2. /Economics
  3. /The multiplier and the accelerator

22 exam-style questions on OCR A Level Economics The multiplier and the accelerator. Each one has a worked solution and a mark scheme showing where the marks go.

Question bank