A-LevelEconomicsThe macroeconomy9708/32 · May/June 2017 · Q301 Mark
In an economy with unemployed resources the government increases its expenditure. When would this be least likely to increase national income by the full multiplier effect?
- In an economy with unemployed resources the government increases its expenditure. When would this be least likely to increase national income by the full multiplier effect? A when the level of autonomous private investment is increased B when the marginal propensity to save is reduced C when the government allows money supply to expand D when the level of interest rates rises[1]
Mark scheme
Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.
- [1] D
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