The multiplier

Q3 Work out France's multiplier from a marginal propensity to consume of 0.21 in January 2023.

Q9 Work out the multiplier value from the given propensities to save, tax and import.

Q2(c) Given a UK marginal propensity to consume of 0.8, identify the value of the multiplier. (0.2 / 0.8 / 1.3 / 5.0)

Q4(b) With the UK's marginal propensity to consume estimated at 0.1 during July 2020, calculate aggregate demand's total rise after £60 million extra government spending.

Q9 Work out the MPC when $150m of extra investment eventually raises national income by $1 500m.

Q3 Identify what would raise a country's multiplier, given Burundi's estimated value of 0.1 (changes in MPS, MPM, MPT, MPC).

Q4(b) Using UK consumption-to-GDP data for 2004–2021, explain how a weaker marginal propensity to consume affects real GDP, bringing the multiplier into your answer.

Q9 Calculate the MPC when $25bn of extra state spending eventually raises a country's national income by $100bn.

Q1 Pick the change most likely behind a multiplier dropping from 1.7 to 0.9 (lower marginal propensity to tax / lower marginal propensity to save / higher marginal propensity to consume / higher marginal propensity to import).

Q1(a) Using the UK's estimated marginal propensity to consume of 0.64, calculate the total reduction in UK GDP resulting from a £20 million fall in government spending.

Q1 Given a German marginal propensity to consume of 0.4, calculate the value of the multiplier.

Q3 Select the change that would shrink a nation's multiplier (higher marginal propensity to import / lower marginal propensity to tax / higher marginal propensity to consume / lower marginal propensity to save)

Q1(b) Work out the eventual rise in US aggregate demand generated by an $800 billion fiscal stimulus when the multiplier is put at roughly 1.5.

Q9 An RM30 billion rise in Malaysian government spending was expected to raise national income by RM150 billion; calculate the marginal propensity to consume, showing workings.

Q6 Given a Danish marginal propensity to consume of 0.49, calculate the value of the multiplier.

Q2(a) Given a £115 million port redevelopment and a multiplier of 1.8, identify the total increase in GDP, other things equal.

Q2(b) Take the Dover Port redevelopment and explain how multiplier effects feed through into higher aggregate demand.

Q1 Given a Chinese marginal propensity to consume of 0.5 and a Y1.5bn increase in infrastructure spending, calculate the final increase in GDP.

Q11 Given a Spanish marginal propensity to consume of 0.72 and an EUR18 billion defence investment, calculate the final increase in GDP, showing workings.

Q1(b) Given a £9.3bn injection and an expected £44.1bn increase in UK GDP, calculate the value of the multiplier.

Q1(c) Pick the change that would shrink the UK multiplier (lower MPS / lower tax propensity / higher MPC / higher import propensity).

Q11 Given an Egyptian marginal propensity to consume of 0.6 and a LE11.9 billion renewable energy investment, calculate the final increase in national income, ceteris paribus.

Q6(d) Give two reasons the multiplier's value could become larger.

Q2(b) Explain what happens to the multiplier when the marginal propensity to save drops, holding everything else constant.

Q2(c) Identify the correct size of the multiplier from the data provided.

Q5(a) With the UK marginal propensity to consume at 0.5, work out how much national income rises from a £15 billion road-building programme.