• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Sept 2012 Q14 - Marginal Propensity

G

gdmiccc

Member
Hi,
Could someone please help me with Q14 from Sept2012. I've reviewed the other posts relating to this topic but still can't figure this one out.

Open economy, no taxation, marginal propensity to save is 0.25. Level of income is €800million. Rise in Govt expenditure of €100. What is likely level of consumption?:
A: €700m
B: €800m
C: €900m
D: €1000m
 
You must log in or register to reply here.
Back
Top