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In an Economy, for Every $1,600 Decrease in Income, Spending

Question 173

Multiple Choice

In an economy, for every $1,600 decrease in income, spending falls by $1,200. It can be concluded that the


A) slope of the saving schedule is 1.33.
B) slope of the saving schedule is 0.75.
C) marginal propensity to consume is 1.33.
D) marginal propensity to save is 0.25.

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