Question 6

If the marginal propensity to consume is 0.80 and the investment expenditure changes from N100 million to ₦140 million in a given economy, find the level of equilibrium in the given economy, using the formula: K = 1/(1-MPC)
where (K = multiplier, MPC = Marginal Propensity to Consume)

  • A.₦20 million
  • B.₦40 million
  • C.₦28 million
  • D.₦200 million
Objective

Question details

Exam body
UNN
Subject
Economics
Year
2019/2020
Question no.
#6
Type
Objective

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