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In a Simple Economy in Which Prices Are Constant and There

Question 276

Multiple Choice

In a simple economy in which prices are constant and there are no income taxes or imports, the marginal propensity to save is 0.2. If exports increase $50, what impact will that have on aggregate expenditure?


A) increase by $250
B) increase by $100
C) decrease by $250
D) decrease by $100

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