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Suppose Disposable Income Increases from $11 Trillion to $12 Trillion

Question 82

Multiple Choice

Suppose disposable income increases from $11 trillion to $12 trillion. At the same time, consumption expenditure increases from $4.2 trillion to__________ . Thus the MPC must equal__________


A) $5.0 trillion; 0.50
B) $5.5 trillion; 0.50
C) $5.0 trillion; 0.80
D) $4.4 trillion; 0.40

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