Post Utme Rhema University 2025 Economics Question 29

Practice objective / multiple choice question 29 from the 2025 Post Utme Rhema University Economics examination.

Post Utme Rhema University 2025 Economics Objective / Multiple Choice
Question 29 POST_UTME_RHEMA_UNIVERSITY • 2025 • ECONOMICS • objective

A country's national income is ₦1,000 billion. If the government increases its exp\enditure by ₦100 billion, and the marginal propensity to consume is 0.8, what is the multiplier effect?

Answer Options

A. 1.25
Correct Answer B. 1.50
C. 1.75
D. 2.00
Correct Answer
B
Correct Option:
1.50

About This Question

This is Post Utme Rhema University 2025 Economics Question 29. It is one of the objective questions from the 2025 Post Utme Rhema University Economics examination.

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