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Following is consumption schedules for three private closed economies. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars.
Following is consumption schedules for three private closed economies. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars. (1) (2) (3) DI C DI C DI C $0 $4 $0 $65 $0 $2 10 11 80 125 20 20 20 18 160 185 40 38 30 25 240 245 60 56 40 32 320 305 80 74 50 39 400 365 100 92 Refer to the above data. Suppose that consumption increased by $2 billion at each level of DI in each of the three countries. We can conclude that the: Multiple Choice marginal propensity to save will rise in each of the three countries. marginal propensity to consume will decline in each of the three countries. marginal propensity to consume will remain unchanged in each of the three countries. average propensity to save will fall at each level of DI in each of the three countries
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