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In a Private Closed Economy, National Income Is $4

Question 10

Multiple Choice

In a private closed economy, national income is $4.5 trillion and savings equals $6.4 billion. Based on this data, the marginal propensity to consume:


A) Decreases as income increases
B) Is greater than the marginal propensity to save
C) Is less than the average propensity to consume
D) Cannot be calculated from the data given

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