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If the Consumption Function in a Keynesian Model Is C

Question 4

Multiple Choice

If the consumption function in a Keynesian model is C = 60 + 0.7Y, then the associated saving function is __________.

A) S = - 60 + 0.3Y
B) S = - 60 + 0.7Y
C) S = 40 + 0.3Y
D) S = - 40 + 0.3Y

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