A government decided to increase its expenditure on a major infrastructure project by building new roads. What would decrease the multiplier effect of the project if it had occurred at the same time? A a decrease in imports B a decrease in the rate of interest C an increase in income tax D an increase in the marginal propensity to consume
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.
- [1] Choice C is correct
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