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If Liquidity Constraints - the Inability to Borrow - Continue

Question 13

Multiple Choice

If liquidity constraints - the inability to borrow - continue to decrease for households,


A) the marginal propensity to consume will decrease.
B) the marginal propensity to consume will increase.
C) the marginal propensity to consume will not be affected.
D) the marginal propensity to save will decrease.

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