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Which of the Following Statements Must Be True in the Simple

Question 98

Multiple Choice

Which of the following statements must be true in the simple macro model (with a closed economy and no government) ?


A) APC increases as income rises.
B) APS decreases as income rises.
C) MPS and MPC are both negative.
D) MPC is negative below a certain level of income.
E) The sum of MPC and MPS is one.

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