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19-04-2024
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Suppose that John allocates $10,000 of his disposable income for necessities. Any additional income beyond that is both spent and saved. Assume that he has an annual disposable income of $50,000 and MPC = 0.8. Based on this information, the amount of money John should save would be:
A. $10,000.
B. $40,000.
C. $12,000.
D. $8,000.

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