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According to OECD data, in 2015, household saving as a fraction of disposable income in Germany was 10.1 percent, while in Brazil it was
According to OECD data, in 2015, household saving as a fraction of disposable income in Germany was 10.1 percent, while in Brazil it was 14.2 percent. All else equal, what does this difference tell us about the MPG, MPS, and multipliers of the two economies? How would an increase in investment of the same amount impact the aggregate output in each economy? OA. The MPC and multiplier is larger in Germany than in Brazil. The MPS is larger in Brazil than in Germany. This means that the same volume of stimulus would be more effective in Germany than in Brazil. OB. The MPS, MPC, and multiplier is larger in Germany than in Brazil. This means that the same volume of stimulus would be more effective in Germany than in Brazil. OC. The MPS and MPC is larger in Germany than in Brazil. The multiplier is larger in Brazil than in Germany. This means that the same volume of stimulus would be more effective in Brazil than in Germany. OD. The MPS and multiplier in larger in Germany than in Brazil. The MPC is larger in Brazil than in Germany. This means that the same volume of stimulus would be more effective in Germany than in Brazil
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