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    marginal propensity to consume

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    SHORT ANSWER: 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/marginal-propensity-to-consume-463267

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    There is an inverse relationship between MPC and MPS. If MPC increases, MPS decreases and vice versa because both of these add to 100% or MPC+MPS= 100% and thus, decline ...

    Solution Summary

    Explain the relationship between the marginal propensity to consume and the marginal propensity to save.

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