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If Y = $500 Billion, Autonomous Consumption = $400 Billion

Question 5

Multiple Choice

If Y = $500 billion, autonomous consumption = $400 billion, and the marginal propensity to save = 0.20, then saving will equal:

A) − $300 billion.
B) $300 billion.
C) -$80 billion.
D) $80 billion.

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