A-LevelEconomicsThe macroeconomy9708/32 · Feb/Mar 2017 · Q241 Mark
In a closed economy with neither government expenditure nor taxation, the initial income is $2000 million. All savings are carried out by consumers, who save 25% of any income received above $2000 million. Businesses plan to invest $2000 million.
- (a)What is the value of the multiplier? A 5 B 4 C 4/3 D 3/4[1]
Mark scheme
Marking points from the official mark scheme (Feb/Mar 2017). The mark or mark type is shown in brackets.
- [1] Answer: B
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