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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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If there are two lawyers with similar experience and fees, you should make a decision by _____.
mash [69]

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Answer:

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3 years ago
"While standing on a bank you wish to spear a fish in front of you. Would you aim above, below, or directly at the observed fish
arlik [135]

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