How much will $200 in new spending change equilibrium income if the marginal propensity to save is 0.2

asked Oct 5, 2023 25.2k views

19 votes

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4 votes

Answer:

$250

Step-by-step explanation:

1/MPS=1/(1-0.02)=1.25; 1.25x$200= $250

XAMT answered Oct 10, 2023

by XAMT

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