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    Principles of Macroeconomics Study Set 11
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    Exam 8: Aggregate Expenditure and Equilibrium Output
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    Explain What Effect an Increase in the Marginal Propensity to Save
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Explain What Effect an Increase in the Marginal Propensity to Save

Question 46

Question 46

Essay

Explain what effect an increase in the marginal propensity to save will have on the slope of the planned aggregate expenditures line and on the size of the multiplier.

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An increase in the MPS also represents a...

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