If the marginal propensity to consume is 0.6 and consumption expenditure changes by N10 million,
ECONOMICS
JAMB 2006
If the marginal propensity to consume is 0.6 and consumption expenditure changes by N10 million, the equilibrium level of income will change by
- A. N4.0 milion
- B. N25. 0 milion
- C. N2.5 milion
- D. N15.0 milion
Correct Answer: B. N25. 0 milion
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