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In an Economy, for Every $1600 Decrease in Income, Spending

Question 23

Multiple Choice

In an economy, for every $1600 decrease in income, spending falls by $1200. It can be concluded that the:


A) Slope of the saving schedule is 1.33
B) Slope of the saving schedule is 0.75
C) Marginal propensity to consume is 1.33
D) Marginal propensity to save is .25

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