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If the marginal propensity to consume is 0.75 and private investment increases by N10 billion...

Economics
JAMB 1997

If the marginal propensity to consume is 0.75 and private investment increases by N10 billion while government expenditure decreases by N15 billion, GDP will decrease by?
  • A. N12 billion
  • B. N15 billion
  • C. N20 billion
  • D. N25 billion
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Correct Answer: Option D
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