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Scenario 10

Question 78

Multiple Choice

Scenario 10.2 A hypothetical open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7.Assume that the economy is initially in equilibrium.
Refer to Scenario 10.2.What is the marginal propensity to save of this economy?


A) 0.2
B) 0.3
C) 0.7
D) 0.9
E) 0.6

Correct Answer:

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