Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

For an open economy, a 100 increase in autonomous investment leads to a 300 rise in equilibrium national income. What conclusion follows?

  • AThe accelerator is 3.
  • BThe marginal propensity to consume is 3/2.
  • CThe marginal propensity to import is 3/2.
  • DThe marginal propensity to save plus marginal tax rate is 1/3.

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