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    Economics Today
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    Exam 11: Consumption, Real GDP, and the Multiplier
  5. Question
    Suppose That the Marginal Propensity to Save (MPS)equals 0
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Suppose That the Marginal Propensity to Save (MPS)equals 0

Question 250

Question 250

Multiple Choice

Suppose that the marginal propensity to save (MPS) equals 0.8. The value of the multiplier would be


A) 0.8.
B) 1.25.
C) 0.2.
D) 5.0.

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