Post Utme Uniosun 2023 Economics Question 15

Practice objective / multiple choice question 15 from the 2023 Post Utme Uniosun Economics examination.

Post Utme Uniosun 2023 Economics Objective / Multiple Choice
Question 15 POST_UTME_UNIOSUN • 2023 • ECONOMICS • objective

A government is u\sing fiscal policy to stimulate the economy. If the government increases government sp\ending by 10%, and the multiplier effect is 2, what is the likely effect on the aggregate demand?

Answer Options

A. The aggregate demand will increase by 10%
Correct Answer B. The aggregate demand will increase by 20%
C. The aggregate demand will remain unchanged
D. The aggregate demand will decrease by 10%
Correct Answer
B
Correct Option:
The aggregate demand will increase by 20%

About This Question

This is Post Utme Uniosun 2023 Economics Question 15. It is one of the objective questions from the 2023 Post Utme Uniosun Economics examination.

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