AS Paper 2, June 2019The UK Economy – Performance and Policies
AS Paper 2, June 2019, Q1(c)
Which one of the following is a likely cause of a decrease in the value of the UK’s multiplier?
Multiple choice1 mark
Context
It is estimated that building a second runway at Gatwick airport will require an investment of £9.3 billion. The total increase in UK GDP as a result of this injection is expected to be around £44.1 billion.
AA decrease in the marginal propensity to save
BA decrease in the marginal propensity to tax
CAn increase in the marginal propensity to consume
DAn increase in the marginal propensity to import