Post Utme Caleb University 2023 Economics Question 30

Practice objective / multiple choice question 30 from the 2023 Post Utme Caleb University Economics examination.

Post Utme Caleb University 2023 Economics Objective / Multiple Choice
Question 30 POST_UTME_CALEB_UNIVERSITY • 2023 • ECONOMICS • objective

A country is experiencing a recession and the government decides to implement a fiscal policy to stimulate the economy. If the government increases its sp\ending by 10% and the multiplier effect is 2, what would be the effect on the GDP?

Answer Options

Correct Answer A. The GDP would increase by 20%.
B. The GDP would decrease by 10%.
C. The GDP would remain unchanged.
D. The GDP would increase by 5%.
Correct Answer
A
Correct Option:
The GDP would increase by 20%.

About This Question

This is Post Utme Caleb University 2023 Economics Question 30. It is one of the objective questions from the 2023 Post Utme Caleb University Economics examination.

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