Neco 2022 Economics Question 37
Practice objective / multiple choice question 37 from the 2022 Neco Economics examination.
The government plans to raise the income‑tax rate from 10\% to 12\% on a taxable‑income base estimated at \(\text{₦}5{,}000\) million and at the same time increase spending on education by \(\text{₦}200\) million. The marginal propensity to consume (MPC) is 0.75. Calculate the change in equilibrium national income and state whether the policy is expansionary or contractionary.
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About This Question
This is Neco 2022 Economics Question 37. It is one of the objective questions from the 2022 Neco Economics examination.
Difficulty level: Medium .
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