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A-LevelEconomicsNational IncomeOct/Nov 2018Paper 3 Q241 Mark

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

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About This A-Level Economics Question

This structured question appeared in the Cambridge A-Level Economics (9708) Oct/Nov 2018 examination, Paper 3 Variant 1. It tests the topic of National Income and is worth 1 mark.

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