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Edexcel A-Level Economics AS 2.3.4 4c Calculations of the Multiplier Using the Formula 1 1 Mpc and 1 Mpw Where Mpw Mps Questions

Use Edexcel IAL Economics 2.3.4.4c questions to calculate a multiplier from MPC and reverse the formula to recover MPC from an income change.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS

Exam points

  • calculate the multiplier as 1/(1-MPC) from a given MPC
  • divide final national-income change by an autonomous injection, then rearrange 1/(1-MPC) to find MPC

Edexcel A-Level Economics AS 2.3.4 4c Calculations of the Multiplier Using the Formula 1 1 Mpc and 1 Mpw Where Mpw Mps Questions question 1

[Maximum number: 1]

In Denmark the marginal propensity to consume is estimated to be 0.49 .
Based on this estimate, which one of the following is the value of the multiplier for Denmark?

A

0.51

B

1.96

C

2.04

D

4.90

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