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A-LevelEconomicsThe macroeconomy9708/31 · May/June 2018 · Q251 Mark

From any additional national income, 20% is spent on imports, 25% is paid in taxes, 5% is saved and the rest is spent on domestically produced goods. According to the multiplier effect, if exports increase by $100 million, what will be the final increase in spending by the country's residents on domestically produced goods? A $50 million B $100 million C $200 million D $500 million

Mark scheme

Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.

  1. [1] B

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About this question

Topic
The macroeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source
A-Level Economics, May/June 2018 Paper 3 Variant 1, question 25.

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