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If Your Disposable Personal Income Increases from $33,000 to $41,000

Question 142

Multiple Choice

If your disposable personal income increases from $33,000 to $41,000 and your consumption increases from $8,000 to $12,000, your marginal propensity to consume (MPC) is:


A) 0.2.
B) 0.4.
C) 0.5.
D) 0.8.
E) 1.0.

Correct Answer:

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