If the marginal propensity to consume is 0.75 and private investment increases by N10 billion while government expenditure decreases by N15 billion, GDP will decrease by?

By: |Published on: Aug 2|Categories: Economics WAEC| 0 comments

A. N12 billion
B. N15 billion
C. N20 billion
D. N25 billion

Correct Answer:

Option D – N25 billion

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