From any extra national income, 20% goes on imports, 15% is paid in taxes, 5% is saved, and the remainder is used to buy domestically-produced goods. What is the value of the multiplier?
- A2.5
- B5
- C6
- D20
Economics 9708 · AS & A Level · Economic growth
Economics 9708 · AS & A Level · Economic growth
From any extra national income, 20% goes on imports, 15% is paid in taxes, 5% is saved, and the remainder is used to buy domestically-produced goods. What is the value of the multiplier?