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Suppose the Only Leakages Are Savings and Taxes

Question 24

Multiple Choice

Suppose the only leakages are savings and taxes.The tax rate is 0.2 and the multiplier is 1.92.These values imply that the marginal propensity to consume is


A) 0.32.
B) 0.60.
C) 0.68.
D) 0.8.

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