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Calculate the Marginal Propension to Consume

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Reference no: EM133038455

Question - At the end of 2019, the country X households, increases the disposable income level by 1 (USD billions) and uses 0.8 of the increase for goods and services spending and the rest 0.2 to save for future investments.

Required -

1. Calculate the Marginal Propension to Consume. Show your Calculations.

2. Calculate the Marginal Propension to Save. Show your Calculations.

Reference no: EM133038455

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