Waec Model Questions Vol1 2018 Economics Question 49
Practice objective / multiple choice question 49 from the 2018 Waec Model Questions Vol1 Economics examination.
In an economy the marginal propensity to consume (MPC) is 0.75 and the income tax rate is 20 % of income. The government decides to increase its spending by N200 million. If the initial equilibrium national income is N1,000 million, what is the new equilibrium income after the spending change? Give your answer in millions of Naira.
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About This Question
This is Waec Model Questions Vol1 2018 Economics Question 49. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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