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The Marginal Propensity to Consume and the Marginal Propensity to SaveIf disposable income increases ...
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The Marginal Propensity to Consume and the Marginal Propensity to SaveIf disposable income increases ...
The Marginal Propensity to Consume and the Marginal Propensity to Save
If disposable income increases by $120 million and saving increases by $35 million, then the marginal propensity to save (MPS) is ________. (Round to the nearest hundredth.)
▸ -2.43
▸ 3.43
▸ 0.71
▸ 0.29
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Macroeconomics
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3
rd
Authors:
Acemoglu, Laibson, List
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0.29
The formula for the MPS is: change in saving divided by change in disposable income.
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