JAMB Economics 2019 Objective — Question 9
Question 9 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2019 Objective paper, with the correct answer and a full explanation.
Advertisement
In a closed economy, if the marginal propensity to consume is 0.6, the value of the multiplier is
- A. 2.5Correct
- B. 5.8
- C. 27.24
- D. 7.24
Explanation
Multiplier (k) = 1/(1−MPC) = 1/(1−0.6) = 1/0.4 = 2.5.
Advertisement
Sign up free to unlock
- Score tracking
- Practice history
- Saved questions
- Progress dashboard
- Personalized sessions
- Weak-topic breakdown
…and/or go further with premium services and No Ads.