The multiplier and its effects - Jamb Economics Past Questions and Answers

Question 1:

• JAMB 2019

A demand which gives rise to the reverse of the law of demand is__________

A. Derived demand
B. Joint demand
C. Abnormal demand
D. Composite demand

Question 2:

• JAMB 2016

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:

• JAMB 1999

The value of the multiplier depends on?

A. MPC and level of income
B. Level of personal income
C. Level of personal savings
D. Government policy and MPC

Question 4:

• JAMB 2002

In a closed economy, the marginal propensity to consume is 0.6 and the average propensity to consume 0.8. The value of the multiplier is?

A. 2.5
B. 2.6
C. 2.7
D. 2.4

Question 5:

• JAMB 2004

Given that Y = C + I and C = bY where b = 0.8, what is the multiplier?

A. 5
B. 10
C. 4
D. 2