JAMB Economics 2023 Objective — Question 9
Question 9 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2023 Objective paper, with the correct answer and a full explanation.
Advertisement
If the marginal propensity to consume of an economy is 0.85, what is the multiplier?
- A. (A) 0.15
- B. (B) 1/0.85
- C. (C) 0.85/0.15
- D. (D) 1/0.15Correct
Explanation
The multiplier = 1/(1−MPC) = 1/(1−0.85) = 1/0.15.
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.