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The Marginal Propensity to Consume

Question 43

Multiple Choice

The marginal propensity to consume


A) is equal to zero when disposable income equals consumption expenditure.
B) is equal to 1 minus the slope of the saving function.
C) is negative when saving is positive.
D) increases as the economy moves upward along the consumption function.
E) is greater than the slope of the 45-degree line.

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