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    Exam 12: Consumption, Real GDP, and the Multiplier
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    If the Marginal Propensity to Save Is 0
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If the Marginal Propensity to Save Is 0

Question 229

Question 229

Multiple Choice

If the marginal propensity to save is 0.4 and disposable income decreases from $2,000 to $1,000, saving will


A) decrease by $400.
B) increase by $400.
C) decrease by $80.
D) increase by $80

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