Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

Which statement explains the multiplier process as it works in a closed economy with no government sector?

  • AChanges in National Income determine the level of investment.
  • BThe level of consumption depends on the level of National Income.
  • CThe levels of consumption and investment together determine the level of National Income.
  • DWhen investment changes, there will be a greater change in equilibrium National Income.

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