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Aggregate Expenditures Model and Macroeconomic Equilibrium
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Aggregate Expenditures Model and Macroeconomic Equilibrium
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15. Deriving the Aggregate Expenditures Model / Aggregate Expenditures Model and Macroeconomic Equilibrium / Problem 4
Problem 4
What does the marginal propensity to consume indicate?
A
The percentage of income spent on investment.
B
The proportion of additional income spent on consumption.
C
The total amount of income saved.
D
The amount of government purchases.
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