Neco 2025 Economics Question 9
Practice objective / multiple choice question 9 from the 2025 Neco Economics examination.
An economy has autonomous investment of ₦30 million. The marginal propensity to consume is \(0.75\). Indirect taxes net of subsidies are zero. The accelerator coefficient is defined as \(k = 1 / (1 - MPC)\). If equilibrium national income rises by ₦80 million, compute the new total level of investment. Give your answer in millions of naira.
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About This Question
This is Neco 2025 Economics Question 9. It is one of the objective questions from the 2025 Neco Economics examination.
Difficulty level: Medium .
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