Answer to Question #332910 in Macroeconomics for Abiodun

Question

Assume that the multiplier has a value of 3. Now assume that the government decides to increase aggregate demand in an attempt to reduce unemployment. It raises government expenditure by N100 million with no increase in taxes. Firms, anticipating a rise in their sales, increase investment by N200 million, of which N50 million consists of purchases of foreign machinery. How much will national income rise

Answer 1

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