The marginal propensity to withdraw is ?
Correct answer: C. MPS + MPT + MPM
- A. 1/investment multiplier
- B. 1-(1/injections multiplier
- C. MPS + MPT + MPM
- D. the proportion of national income that is withdraw from the circular flow of income
Explanation
The marginal propensity to withdraw is the part of an additional unit of income not returning to consumption, represented by MPS + MPT + MPM. These withdrawals include saving, taxes and imports.
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