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

User Dijo David
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1 Answer

4 votes

Answer:

$250

Step-by-step explanation:

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

User XAMT
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