Neco 2019 Economics Question 28

Practice objective / multiple choice question 28 from the 2019 Neco Economics examination.

Neco 2019 Economics Objective / Multiple Choice Medium Difficulty
Question 28 NECO • 2019 • ECONOMICS • objective

In an economy the marginal propensity to consume (MPC) is 0.8 and the average tax rate is 25 %. If government spending is increased by \(\Delta G = 200\) million naira, calculate the resulting change in equilibrium national income \(\Delta Y\) using the appropriate fiscal multiplier.

Answer Options

Correct Answer A. 500
B. 250
C. 1000
D. 444
Correct Answer
A
Correct Option:
500

About This Question

This is Neco 2019 Economics Question 28. It is one of the objective questions from the 2019 Neco Economics examination.

Difficulty level: Medium .

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