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A Level Economics:

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18 In a closed economy with no government, the level of investment is $5 million, the equilibrium
level of income is $22 million, the full employment level of income is $25 million and there is a
deflationary gap of $1 million.
What can be deduced from this information?
A The marginal propensity to consume is 2/3
B The marginal propensity to consume is 1/3
C The value of the investment multiplier is 5.
D The value of the investment multiplier is 1.5.
the answer is a

As salaam alaikum
Sir Qamar Baloch Please explain the answer to this question.
 
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sir plz email me the guess paper too, i will mssg u my email. I am quite good at Econ(MA) but i feel if i applied myself correctly i could become even better, IA, so plz give me any tips or materials i might need to further improve my economics :)
 
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Ok dear I am posting the questions today and will post the complete solution tomorrow positively IA.
 
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Dear students keep in mind that guess means estimation not a confirmation. So do your best to grasp the syllabus. However, it will help in this regard as well. Alhamdulilah in the last years guess proved to be more than 100 % true but again its not confirmation.
 
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