Neco 2022 Economics Question 26
Practice objective / multiple choice question 26 from the 2022 Neco Economics examination.
Country A's aggregate expenditure model is given by \\(Y = C + I + G + (X - M)\\). Consumption is \\(C = 50 + 0.6(Y - T)\\) where tax revenue is \\(T = 0.2Y\\). Investment depends on the interest rate \\(r\\) as \\(I = 200 - 5r\\). Government spending is fixed at \\(G = 350\\). Net exports are \\(X - M = 30 - 0.1Y\\). If the equilibrium output is required to be \\(Y = 1000\\), determine the interest rate \\(r\\) (in percentage points) that satisfies the equilibrium condition.
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About This Question
This is Neco 2022 Economics Question 26. It is one of the objective questions from the 2022 Neco Economics examination.
Difficulty level: Hard .
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