Multiplier And Its Effects Jamb Economics Past Questions
Question 1
The multiplier is defined as
- A. The ratio of the change in income to the change in investment
- B. The change in investment divided by the change in income
- C. \(\frac{1}{MPC}\)
- D. \(\frac{1}{1-\text{MPS}}\)
Question 2
If the marginal propensity to save is 0.8, calculate the multiplier?
- A. 1.25
- B. 5.00
- C. 1.30
- D. 2.25
Question 3
The current stage of the economy is depicted in curve 1. Point P suggests that the economy is
- A. reaching full employment but not full production
- B. attaining full production but not full employment
- C. under capitalized
- D. attaining both full employment and full production
Question 4
The investment expenditure of an economy changes by N2 million and MPC is 0.75
What is the change in income?
- A. N0.5m
- B. N1.5m
- C. N2.6m
- D. N8.0m
Question 5
The investment expenditure of an economy changes by N2 million and MPC is 0.75
The multiplier is
- A. 8
- B. 4
- C. 3
- D. 2
