AI-generated, not reviewedHL only4 marks, command term Calculate
The figures are invented. In an economy the marginal propensity to save is 0.15, the marginal propensity to tax is 0.25 and the marginal propensity to import is 0.20. (i) Calculate the Keynesian multiplier. [2] (ii) Exports fall by $9 billion. Calculate the resulting change in GDP, assuming prices do not change. [2]
HL Paper 3-style calculation (standalone practice; not an IB question).