Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

In an economy below full employment, which combination of changes will certainly cause national income to fall?

  • Aa fall in government expenditure together with a rise in the propensity to import
  • Ba fall in the rate of taxation together with a rise in the saving rate
  • Ca rise in investment expenditure together with a rise in the rate of taxation
  • Da rise in the propensity to consume together with a rise in the rate of taxation

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