Sunday, 10 May 2015

Cima C04 Exam Question No 6

Question No 6:

Which ONE of the following would lead to a fall in the value of the multiplier?

A.
A decrease in the marginal propensity to consume.
B.
A fall in the level of public expenditure.
C.
Consumers saving a lower proportion of their income.
D.
A decrease in the marginal propensity to import.

Answer: A

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