The marginal propensity to spend on domestic goods will decrease, if:

Name: The marginal propensity to spend on domestic goods will decrease, if:
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Question

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The marginal propensity to spend on domestic goods will decrease if the marginal propensity to save (MPS) increases, because an increase in MPS means that consumers are saving more of their income rather than spending it, including on domestic goods.

The Marginal Propensity to Spend on Domestic Goods Will Decrease