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    Effects of MPC and MPS to GDP

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    Explain the relationship between the marginal propensity to consume and the marginal propensity to save. How do these two components affect GDP?

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    https://brainmass.com/economics/income-distribution/effects-of-mpc-and-mps-to-gdp-409657

    Solution Preview

    Marginal propensity to consume (MPC) is a portion of the additional income of a worker ...

    Solution Summary

    This solutions looks at how marginal propensity to consume and the marginal propensity to save affects the gross domestic product.

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