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Suppose the multiplier is 3, the marginal tax rate is 20%, and the marginal propensity to consume out of disposable income is 0.9. If government

Suppose the multiplier is 3, the marginal tax rate is 20%, and the marginal propensity to consume out of disposable income is 0.9. If government spending increases by $10b, then national saving

a) increases

b) decreases by $1b or less

c) decreases by more than $1b but not more than $2b

d) decreases by more than $2b

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