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If Consumption Expenditure for a Household Increases from $300 to $500

Question 26

Multiple Choice

If consumption expenditure for a household increases from $300 to $500 when disposable income increases from $200 to $500, the marginal propensity to consume is


A) equal to 1.
B) equal to 0.75.
C) equal to 1.33.
D) negative.
E) equal to 0.67.

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