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In a closed economy, the national savings functions for country M is S = - 150 + 0.35Y and investment I = RM 275 million
In a closed economy, the national savings functions for country M is S = - 150 + 0.35Y and investment I = RM 275 million
(i) Compute the Marginal Propensity Consumption (MPC).
(ii) Derive the consumption function.
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