In an open economy with a government sector, the marginal propensity to import is 0.3, the marginal propensity to tax is 0.3 and the marginal propensity to save is 0.2. What is the value of the multiplier?
Select ONE answer:
- 1.25
- 2
- 2.5
- 5
Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple choice question is suitable for Economics KS4 and KS5 classes.
The answer is 1
- Correct
- Not correct
- Not correct
- Not correct
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