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If Income Rises from $3,000 Per Month to $3,500 Per

Question 15

Multiple Choice

If income rises from $3,000 per month to $3,500 per month and savings increase from $200 per month to $400 per month, what is the marginal propensity to save?


A) 0.4
B) 0.8
C) 1.25
D) 2.5

Correct Answer:

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