Neco Model Questions Vol1 2024 Economics Question 17
Practice objective / multiple choice question 17 from the 2024 Neco Model Questions Vol1 Economics examination.
In a given year, the government's tax revenue is \(4,200\) billion Naira and non‑tax revenue is \(800\) billion Naira. Total expenditure amounts to \(5,500\) billion Naira, of which \(300\) billion Naira are interest payments on existing debt. The country's GDP is \(15,000\) billion Naira and the government wishes to keep the primary deficit no larger than 5 % of GDP. What is the maximum additional borrowing the government can undertake while respecting this primary‑deficit limit?
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About This Question
This is Neco Model Questions Vol1 2024 Economics Question 17. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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