Multiple Choice
If the marginal propensity to consume for an economy is 0.8, then the marginal propensity to save for the economy is _____. Assuming that there are no leakages except savings, the spending multiplier for the economy is:
A) 0.5; 5.
B) 5; 0.5.
C) 0.2; 5.
D) 5; 0.2.
Correct Answer:
Verified
Correct Answer:
Verified
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