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Edexcel A-Level Economics AS 2.3.4 4b Marginal Propensities and Their Effects on the Multiplier the Marginal Propensity to Questions

Practise judging how MPC, MPS, MPT and MPM alter the multiplier, including common multiple-choice decisions on leakages.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS

Exam points

  • predict that the multiplier rises when MPC rises or MPS, MPT or MPM falls, and falls for the reverse changes

Edexcel A-Level Economics AS 2.3.4 4b Marginal Propensities and Their Effects on the Multiplier the Marginal Propensity to Questions question 1

[Maximum number: 1]

The value of Burundi's multiplier is estimated to be approximately 0.1.
Ceteris paribus, which one of the following would cause an increase in the value of a country's multiplier?

A

An increase in the marginal propensity to save

B

An increase in the marginal propensity to import

C

A decrease in the marginal propensity to tax

D

A decrease in the marginal propensity to consume

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