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If MPC is 0.7 while government expenditure increased by N 150m, the equilibrium ...

If MPC is 0.7 while government expenditure increased by N 150m, the equilibrium national income is
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A N 214 million
  • B N 45 million
  • C N 105 million
  • D N 500 million
Correct Answer: Option B
Explanation:
1/(1-MPC) x150
1/(1-0.7) x 150= 45m
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