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Business, 19.11.2019 06:31 jennelledenise

Suppose that when your income increases by $200, your consumption expenditures increases by $150. your marginal propensity to consume (mpc) is if your mpc was the same as the mpc for the economy as a whole, the expenditure multiplier for the economy would be thus, a $1 million investment project would increase income by in total.

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