Neco Model Questions Vol1 2024 Economics Question 21

Practice objective / multiple choice question 21 from the 2024 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2024 Economics Objective / Multiple Choice Hard Difficulty
Question 21 NECO_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • objective

During a five‑year period the real GDP of a country rose from \(\text{₦}2.5\) trillion to \(\text{₦}3.0\) trillion while its population increased from 150 million to 165 million. In the final year the government's policy raised net investment as a proportion of GDP from 20 % to 25 %. If the marginal propensity to consume (MPC) is 0.8, estimate the change in average per‑capita disposable income that can be attributed to the increase in net investment, using the simple Keynesian multiplier. Give your answer in Naira (rounded to the nearest Naira).

Answer Options

A. 7625
Correct Answer B. 7576
C. 7560
D. 7480
Correct Answer
B
Correct Option:
7576

About This Question

This is Neco Model Questions Vol1 2024 Economics Question 21. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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