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  3. a explain whether each of the following would cause the...

Question: a explain whether each of the following would cause the...

Question details

(a)   Explain whether each of the following would cause the value of the multiplier to be larger or smaller.

 

(i)       An increase in imports. [1 mark]

 

 

(ii)     An increase interest rates. [1 mark]

 

(iii)    An increase in marginal propensity to consume. [1 mark]

 

 

(iv)    An increase in the average tax rate paid by households to decrease. [1 mark]

 

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