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If You Save $20 When You Experience a $200 Rise

Question 25

Multiple Choice

If you save $20 when you experience a $200 rise in your income:


A) your marginal propensity to consume is 0.1.
B) your marginal propensity to consume is 0.9.
C) your marginal propensity to save is 0.2.
D) your marginal propensity to save is 0.8.

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