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Assume that the marginal propensity to save is 0.2 (or 20%), what is the maximum value of the spending multiplier in the economy? (1 point)
Assume that the marginal propensity to save is 0.2 (or 20%), what is the maximum value of the spending multiplier in the economy? (1 point)
| 0.8 | |
| 2 | |
| 4 | |
| 5 | |
| 20 |
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International Economics Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
9th Edition
978-0132146654, 0132146657, 9780273754091, 978-0273754206
