The investment expenditure of an economy changes by N2 million and MPC is 0.75
What is the change in income?
What is the change in income?
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Correct Answer: Option A
Explanation:
MPC is a proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.
Investment expenditure = 2,000,000
MPC = 0.75
0.75 x 2,000,000 = 1,500,000
change in income =Â 2,000,000 - 1,500,000 = 500,000
Â
MPC is a proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.
Investment expenditure = 2,000,000
MPC = 0.75
0.75 x 2,000,000 = 1,500,000
change in income =Â 2,000,000 - 1,500,000 = 500,000
Â