Suppose that the marginal propensity to save (MPS) equals 0.8. The value of the multiplier would be

A) 0.2. B) 0.8. C) 1.25. D) 5.0.

C

Economics

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Refer to Scenario 1. What is the average product of the first three hours of labor?

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Christine works for a firm that makes tires for cars. How is Christine's wage affected if the demand for cars increases?

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