Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

If the marginal propensity to consume in an economy over a specified period rises above unity, this must indicate that

  • Aconsumers will be spending more than they are earning.
  • Binflation will be generated in the economy.
  • Cthe country will suffer a trade deficit.
  • Dthe marginal propensity to save will be negative.

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