Waec Model Questions Vol1 2025 Economics Question 5

Practice objective / multiple choice question 5 from the 2025 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2025 Economics Objective / Multiple Choice Medium Difficulty
Question 5 WAEC_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

In an economy, the marginal propensity to consume (MPC) is 0.75 and the proportional tax rate is 20%. The government decides to increase its spending by ₦200 billion. Assuming the simple Keynesian model, by how many billions of Naira will equilibrium national income change?

Answer Options

A. 600
Correct Answer B. 500
C. 250
D. 400
Correct Answer
B
Correct Option:
500

About This Question

This is Waec Model Questions Vol1 2025 Economics Question 5. It is one of the objective questions from the 2025 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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