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If the Value of Cy, the MPC, Is Equal to .75

Question 102

Multiple Choice

If the value of Cy, the MPC, is equal to .75 and the tax rate is equal to .1


A) the marginal propensity to save is equal to .15.
B) the marginal propensity to save is equal to .65.
C) the marginal propensity to save is equal to .25.
D) the marginal propensity to save is equal to 0.

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