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Firlakuza [10]
3 years ago
5

If the marginal propensity to save is 0.2 in an economy, a $20 billion rise in investment spending will increase:

Business
1 answer:
faltersainse [42]3 years ago
4 0

Answer:

D. Consumption by $80 billion.

Explanation:

Marginal propensity to Save = 1 / MPS

= 1 / 0.2

= 5

= $20 billion × 5

= $100 billion

= $100 - $20

= $80 billion

Therefore, a $20 billion rise in investment spending will increase consumption by $80 billion.

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Encouraging the buyer to provide feedback is an effective sales dialogue strategy, which focuses on creating value for the buyer, as creating value for a customer is related to the customer's ability to exercise his opinion about the product or the purchasing process, in addition to feeling valued and improving the perception of the company, which values ​​the feedback of its customers.

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