Advanced Placement (AP), 10.08.2021 07:10 leedleee
5 In 2014 the Bank of England estimated the marginal propensity to consume of UK
consumers to be 0.5.
In 2014 the Chancellor of the Exchequer announced a £15 billion investment
programme into UK road infrastructure.
(Sources: http://www. bankofengland. co. uk/publications/Documents/quarterly bulletin/
2014/qb149405.pdf and https://www. gov. uk/government/news/
autumn-statement-2014-16-things-you -should-know)
(a) Using the information above, calculate the total increase in national income,
resulting from the £15 billion investment.
Answers: 1
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5 In 2014 the Bank of England estimated the marginal propensity to consume of UK
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