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Economic management — Question 6

QCAA 2021, Paper 1 · 1 mark

Q6 · 2021 · External assessmentUnclassified1 mark

QUESTION 6

Which country would be most likely to experience a longer time lag in economic growth following a cash rate change (ceteris paribus)?

(A) acountry where marginal propensity to consume is 0.7

(B) acountry where marginal propensity to import is 0.7

(C) acountry where marginal propensity to invest is 0.7

(D) acountry where marginal propensity to save is 0.7

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