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    Exam 8: Aggregate Expenditures
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    Suppose the Marginal Propensity to Consume Is 0
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Suppose the Marginal Propensity to Consume Is 0

Question 151

Question 151

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Suppose the marginal propensity to consume is 0.9. Jim decides to spend $1,000 on a small boat. How much of the new income in the first three rounds is new spending?

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