Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

In an economy with no government sector or foreign trade, the marginal propensity to consume is 0.6. If the equilibrium level of national income is $10000 million and the full employment level of national income is $15000 million, how much must investment rise in order to attain full employment?

  • A$1666 million
  • B$2000 million
  • C$3012 million
  • D$5000 million

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