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Average Propensity to Consume and Save
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Average Propensity to Consume and Save
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14. Income and Consumption / Average Propensity to Consume and Save / Problem 2
Problem 2
Why is it important for policymakers to understand the average and marginal propensities to consume and save?
A
To ensure that all citizens have the same level of disposable income.
B
To determine the exact amount of money each citizen will spend.
C
To calculate the total GDP of the country.
D
To accurately predict the effects of tax changes on consumer behavior.
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