In a closed private economy, income is $50 billion and consumption is $40 billion. When income rises by 10 percent, cons

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answerhappygod
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In a closed private economy, income is $50 billion and consumption is $40 billion. When income rises by 10 percent, cons

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In a closed private economy, income is $50 billion and consumption is $40 billion. When
income rises by 10 percent, consumption rises by 9 percent. The MPS over the relevant
income range is:
A. 0.11 and the multiplier is 9.09
B. 0.28 and the multiplier is 3.57
C. 0.62 and the multiplier is 1.61
D. 0.72 and the multiplier is 3.57
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