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25-11-2022
Business

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if, in an economy, a $200 billion increase in consumption spending creates $200 billion of new income in the first round of the multiplier process and $160 billion in the second round, the marginal propensity to consume and the multiplier are, respectively, multiple choice 0.2 and 1.25. 0.4 and 1.67. 0.4 and 2.5. 0.8 and 5.0.

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