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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

Use Edexcel IAL Economics 2.3.4.4b questions to predict whether changes in MPC, MPS, MPT or MPM raise or lower the multiplier.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS

Exam points

  • predict how MPC, MPS, MPT and MPM changes alter the multiplier by distinguishing injection propensity from leakages

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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