Day: June 20, 2022

Out of any addition to national income, 20 % is spent on imports, 25 % is paid in taxes, 5 % is saved and the rest is spent on domestically produced goods.

What is the value of the multiplier?

Select ONE answer:

1. 20
2. 5
3. 2
4. 0.5

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 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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