passwella.
Menu

JAMB Economics 1997 Question 41

Question 41

National Income

Given: Investment = ₦100 million
Consumption = ₦200m + 0.75Y
Y = C + I
where, Y = Income, C = Consumption and I = Investment.
What is the income level to the nearest million?

  1. A.₦100 million
  2. B.₦300 million
  3. C.₦1,000 million
  4. D.₦1,200 million.
Show the answer and explanation

Answer: D (₦1,200 million.)

Explanation

Y = 200 + 0.75Y + 100, so 0.25Y = 300 and Y = ₦1,200 million.