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Edexcel Economics Theme 2 Exam Verified Questions and Answers Rated A+

Marginal propensity to withdraw (MPW) - ANSWER-The increase in withdrawals from the circular flow (S + T + M) divided by the increase in income that caused them (i.e. change in W / change in Y); this is the same as the sum of the marginal propensity to save, tax and import (MPS + MPT + MPM). Multiplier or national income multiplier or Keynesian multiplier or real multiplier - ANSWER-The figure used to multiply a change in an injection into the circular flow, such as investment, to f...

Marginal propensity to withdraw (MPW) - ANSWER-The increase in withdrawals from the circular flow (S + T + M) divided by the increase in income that caused them (i.e. change in W / change in Y); this is the same as the sum of the marginal propensity to save, tax and import (MPS + MPT + MPM). Multiplier or national income multiplier or Keynesian multiplier or real multiplier - ANSWER-The figure used to multiply a change in an injection into the circular flow, such as investment, to f...

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