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The use of 1/MPS formula as the size of the multiplier in the economy, overstates the actual size of it because: Multiple Choice O saving

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The use of 1/MPS formula as the size of the multiplier in the economy, overstates the actual size of it because: Multiple Choice O saving is the only fraction of the domestic income which is not spent O imports and taxes create new income in the economy O saving is not the only fraction of the domestic income which is not spent. O imports and not taxes creates new income in the economy

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