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6 October, 12:01

The marginal propensity to consume plus the marginal propensity to save is

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  1. 6 October, 12:14
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    The marginal propensity to consume plus the marginal propensity to save equals 1. Because consumption expenditure and saving exhaust disposable income, 0.9 of each dollar increase in disposable income is consumed and the remaining part (0.1) is saved.
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