If MPC = 2/3 and investment is N100 million, the level of national income is

MPC stands for Marginal Propensity to Consume, which refers to the percentage of each additional unit of income that a consumer will spend on consumption. If the MPC is 2/3, this means that for every additional Naira earned, 2/3 of that amount will be spent on consumption, and 1/3 will be saved. If investment is N100 million, it will increase the total income in the economy by a multiple of the initial investment. This multiple is called the multiplier. The formula for the multiplier is: Multiplier = 1 / (1 - MPC) In this case, the multiplier is: Multiplier = 1 / (1 - 2/3) = 1 / (1/3) = 3 This means that every Naira of investment will generate N3 of total income in the economy. Therefore, the level of national income is: National Income = Investment * Multiplier = N100 million * 3 = N300 million Therefore, the correct option is N300 million.