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    Exam 11: Expenditure Multipliers: They Keynesian Model
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    Suppose the Consumption Function Is Given by the Equation C
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Suppose the Consumption Function Is Given by the Equation C

Question 20

Question 20

Multiple Choice

Suppose the consumption function is given by the equation C = 100 + 0.8YD, where YD is disposable income. What is the marginal propensity to consume?


A) 2.0
B) 0.8
C) 100
D) 0.2

Correct Answer:

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