Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

For an open economy that also includes a government sector, the marginal propensity to import is 0.3, the marginal propensity to tax is 0.3 and the marginal propensity to save is 0.2. What is the value of the multiplier?

  • A1.25
  • B2
  • C2.5
  • D5

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