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You are given the following data about an economy that has a fixed price level, no imports, no taxes. Disposable Income Consumption Expenditure (billions of
You are given the following data about an economy that has a fixed price level, no imports, no taxes.
Disposable Income | Consumption Expenditure |
(billions of dollars) | |
0 | 5 |
100 | 80 |
200 | 155 |
300 | 230 |
400 | 305 |
Calculate the savings at each level of disposable income and calculate the marginal propensity to save.
show calculations.
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