Waec Model Questions Vol1 2017 Economics Question 9
Practice objective / multiple choice question 9 from the 2017 Waec Model Questions Vol1 Economics examination.
Country A has a current GNP per capita of $4,000. The government aims to raise GNP per capita to $5,000 in five years. The population grows at 2 % per annum. The economy's marginal propensity to consume (MPC) is 0.75, giving a multiplier of 4. Assuming that net investment is the only autonomous expenditure and that the multiplier effect works instantly each year, calculate the constant annual net investment (in dollars) required to achieve the target. Use an initial population of 10 million and give your answer in millions of dollars, rounded to one decimal place.
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About This Question
This is Waec Model Questions Vol1 2017 Economics Question 9. It is one of the objective questions from the 2017 Waec Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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