If the marginal propensity to save is 0.1 in an economy, a $30 billion rise in investment spending will increase consumption by Multiple Choice 30. 270. 3. 300.
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1. This means that for every additional dollar of income, 0.1 is saved. The remaining portion is the marginal propensity to consume (MPC), which is $1 - MPS = 1 - 0.1 = 0.9$. Show more…
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