Waec Model Questions Vol1 2019 Economics Question 40
Practice objective / multiple choice question 40 from the 2019 Waec Model Questions Vol1 Economics examination.
An economy has the following parameters: marginal propensity to consume (MPC) = 0.75, marginal propensity to import (MPM) = 0.10, income tax rate t = 0.20. Autonomous expenditures are: consumption = 200, investment = 150, government spending = 100, exports = 80 (all in billions of naira). Using the Keynesian model with taxes and imports, calculate the increase in equilibrium aggregate income (ΔY) that results from a rise in government spending of 50 billion naira. Give ΔY rounded to the nearest whole billion.
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About This Question
This is Waec Model Questions Vol1 2019 Economics Question 40. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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