Neco 2017 Economics Question 33

Practice objective / multiple choice question 33 from the 2017 Neco Economics examination.

Neco 2017 Economics Objective / Multiple Choice Medium Difficulty
Question 33 NECO • 2017 • ECONOMICS • objective

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.

Answer Options

A. 75
B. 30
C. 120
Correct Answer D. 60
Correct Answer
D
Correct Option:
60

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 .

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support