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    Exam 19: The Keynesian Model in Action
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    If the Marginal Propensity to Save (MPS) Is 0
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If the Marginal Propensity to Save (MPS) Is 0

Question 80

Question 80

Multiple Choice

If the marginal propensity to save (MPS) is 0.25, the value of the spending multiplier is:


A) 1.
B) 2.
C) 4.
D) 9.

Correct Answer:

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