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Suppose an Increase in Disposable Income from $3 Trillion to $3.2

Question 100

Multiple Choice

Suppose an increase in disposable income from $3 trillion to $3.2 trillion increases consumption from $2.5 trillion to $2.6 trillion. The marginal propensity to consume (MPC) is _____


A) 0.1.
B) 0.2.
C) 0.5.
D) 0.8.
E) 0.9.

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