People decide to save 20 percent of their incomes.The value of the marginal propensity to consume is ________ and the value of the spending multiplier is ________.
A) 0.2; 4
B) 0.8; 80 percent
C) 0.2; 1.25
D) 0.8; 5
E) 0.8; 2 percent
Correct Answer:
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