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30 December, 11:15

If aggregate expenditures increase by $12 billion and equilibrium gdp consequently increases by $48 billion, then the marginal propensity to save in the economy must be:

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  1. 30 December, 11:36
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    The correct answer is 0.25 Marginal propensity is calculated by dividing expenditures by gdp. 12 / 48 = 0.25
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