Gce Model Questions Vol1 2023 Economics Question 20
Practice objective / multiple choice question 20 from the 2023 Gce Model Questions Vol1 Economics examination.
In an open economy the marginal propensity to consume (MPC) is 0.8, the tax rate is 25 % and the marginal propensity to import (MPM) is 0.15.\n\n(a) Compute the Keynesian multiplier for this economy.\n(b) If the government increases autonomous spending by \(£100\) million, what is the expected increase in equilibrium national income? Give the answer in millions of pounds, rounded to the nearest whole number.
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This is Gce Model Questions Vol1 2023 Economics Question 20. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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