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Business, 05.11.2020 19:10 carsondelane13

In Opulencia, the marginal propensity to save is only 0.10. In an effort to promote the virtues of saving, the government starts a campaign encouraging citizens to increase their marginal propensity to save to 0.20. How would this greater saving affect the impact of the multiplier? A) The multiplier rises, making spending more powerful.
B) The multiplier falls, making spending less powerful.
C) The multiplier stays the same.
D) The multiplier will disappear altogether.

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