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A-LevelEconomicsMultiplier EffectMay/June 2019Paper 3 Q251 Mark

In a closed economy with no government expenditure and no taxation, the initial income is $5000 million. All savings are carried out by consumers, who save 20% of any additional income received above $5000 million. Firms plan to invest $1000 million.

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The correct answer is . This question tests the candidate's understanding of multiplier effect within the Economicssyllabus. The examiner's mark scheme requires...

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About This A-Level Economics Question

This structured question appeared in the Cambridge A-Level Economics (9708) May/June 2019 examination, Paper 3 Variant 2. It tests the topic of Multiplier Effect and is worth 1 mark.

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