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If Consumption Increases from $500 Billion to $575 Billion and Income

Question 270

Multiple Choice

If consumption increases from $500 billion to $575 billion and income increases from $600 billion to $700 billion, the marginal propensity to save is:


A) 0.2.
B) 0.25.
C) 0.75.
D) There is not enough information to answer this question.

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