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If an Economy Has No Other Leakages Except Savings and the Spending

Question 74

Multiple Choice

If an economy has no other leakages except savings and the spending multiplier in the economy is 5, then the marginal propensity to consume for the economy is:


A) 0.8.
B) 0.6.
C) 0.4.
D) 0.2.

Correct Answer:

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