In a closed economy; the marginal propensity to consume is 0.6 and the average propensity to consume 0.8. The value of the multiplier is?

By: |Published on: Oct 28|Categories: Economics JAMB| 0 comments

A. 2.5
B. 2.6
C. 2.7
D. 2.4

Correct Answer:

Option A – 2.5

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