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If the Marginal Propensity to Import (MPM) Equals 0

Question 25

Multiple Choice

If the marginal propensity to import (MPM) equals 0.10 and the multiplier equals 5.0, the marginal propensity to consume must equal

A) 0.99
B) 0.95
C) 0.90
D) 0.85
E) 0.50

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