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When the Government of a Country Injects $100 into an Economy

Question 80

Multiple Choice

When the government of a country injects $100 into an economy by purchasing new military equipment, the total spending in the economy increases by $500. The marginal propensity to save for the economy is:


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

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