Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

For a closed economy with no government expenditure or taxation, the starting income is $2000 million. Consumers are responsible for all saving and save 25% of any income received above $2000 million. Businesses intend to invest $2000 million. What is the value of the multiplier?

  • A5
  • B4
  • C3 4
  • D4 3

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