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If the Marginal Propensity to Consume (MPC) Equals 0

Question 20

Multiple Choice

If the marginal propensity to consume (MPC) equals 0.75 (3/4) and the multiplier equals 2.0, the marginal propensity to import (MPM) must equal

A) 0.25
B) 0.50
C) 0.75
D) 1.00
E) 1.25

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