Post Utme Skyline University 2023 Economics Question 32

Practice objective / multiple choice question 32 from the 2023 Post Utme Skyline University Economics examination.

Post Utme Skyline University 2023 Economics Objective / Multiple Choice
Question 32 POST_UTME_SKYLINE_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 ₦100 billion and the marginal propensity to consume is 0.8, find the multiplier effect on the economy.

Answer Options

A. 1.25
Correct Answer B. 1.5
C. 1.75
D. 2
Correct Answer
B
Correct Option:
1.5

About This Question

This is Post Utme Skyline University 2023 Economics Question 32. It is one of the objective questions from the 2023 Post Utme Skyline University Economics examination.

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