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When Disposable Income Equals $800 Billion, Planned Consumption Expenditure Equals

Question 467

Multiple Choice

When disposable income equals $800 billion, planned consumption expenditure equals $600 billion, and when disposable income equals $1,000 billion, planned consumption expenditure equals $760 billion. What is the marginal propensity to save?


A) 0.80
B) 0.64
C) 0.25
D) 0.20

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