Exhibit 9-6 -The Marginal Propensity to Save (MPS)in Exhibit 9-6 Equals
A)0

question 121

Multiple Choice

Exhibit 9-6
$$\begin{array}{l}\text { (Trillions of Dollars) }\\\begin{array} { c c c c c c c c c } \begin{array} { c } \text { Real } \\\text { GDP } \\( \mathrm { Y } ) \end{array} & \begin{array} { c } \text { Net } \\\text { Taxes } \\\text { (NT) }\end{array} & \begin{array} { c } \text { Dispes } \\\text {-able } \\\text { Income } \\\text { (Y-NT) }\end{array} & \begin{array} { c } \text { Con- } \\\text { sumption } \\\text { (C) }\end{array} & \begin{array} { c } \text { Saving } \\\text { (S) }\end{array} & \begin{array} { c } \text { Planned } \\\text { Invest- } \\\text { ment } \\\text { (I) }\end{array} & \begin{array} { c } \text { Govern- } \\\text { ment } \\\text { Purchases } \\\text { (G) }\end{array} & \begin{array} { c } \text { Net } \\\text { Exports } \\\text { (X-M) }\end{array} & \begin{array} { c } \text { Planned } \\\text { Aggregate } \\\text { Expenditures } \\( \mathrm { C } + \mathrm { I } + \mathrm { G } + ( \mathrm { X } - \mathrm { M } ) \end{array} \\\hline 5.0 & 1.0 & 4.0 & 3.9 & 0.1 & 1.0 & 1.0 & - 0.7 & 5.2 \\5.5 & 1.0 & 4.5 & 4.3 & 0.2 & 1.0 & 1.0 & - 0.7 & 5.6 \\6.0 & 1.0 & 5.0 & 4.7 & 0.3 & 1.0 & 1.0 & - 0.7 & 6.0 \\6.5 & 1.0 & 5.5 & 5.1 & 0.4 & 1.0 & 1.0 & - 0.7 & 6.4 \\7.0 & 1.0 & 6.0 & 5.5 & 0.5 & 1.0 & 1.0 & - 0.7 & 6.8\end{array}\end{array}$$
-The marginal propensity to save (MPS) in Exhibit 9-6 equals

• A)0.80 or 4/5
• B)0.60 or 3/5
• C)0.40 or 2/5
• D)0.10 or 1/10
• E)0.20 or 1/5

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