Neco 2017 Economics Question 33
Practice objective / multiple choice question 33 from the 2017 Neco Economics examination.
The government wishes to increase real GDP by \(150\) billion Naira. The marginal propensity to consume (MPC) is \(0.8\) and the marginal tax rate is \(25\%\). Using the fiscal multiplier that incorporates taxes, find the required increase in government expenditure (\(\Delta G\)) in billions of Naira.
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About This Question
This is Neco 2017 Economics Question 33. It is one of the objective questions from the 2017 Neco Economics examination.
Difficulty level: Medium .
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