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      Question

      The value of expenditure multiplier when

      marginal propensity to save is 0.4 is 
      A 2.5 Correct Answer Incorrect Answer
      B 9.2 Correct Answer Incorrect Answer
      C 3.5 Correct Answer Incorrect Answer
      D 4 Correct Answer Incorrect Answer
      E 5 Correct Answer Incorrect Answer

      Solution

      Multiplier = 1/MPS = 1/0.4 = 2.5

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