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If Your Disposable Personal Income Increases from $40,000 to $48,000

Question 122

Multiple Choice

If your disposable personal income increases from $40,000 to $48,000 and your consumption increases from $35,000 to $39,000, your marginal propensity to consume (MPC) is:


A) 0.20.
B) 0.40.
C) 0.50.
D) 0.80.
E) 1.00.

Correct Answer:

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