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Suppose Disposable Income Increases from $7 Trillion to $8 Trillion

Question 257

Multiple Choice

Suppose disposable income increases from $7 trillion to $8 trillion. At the same time, consumption expenditure increases from $6.8 trillion to ________. Thus the MPC must equal ________.


A) $7.8 trillion; 0.80
B) $7.6 trillion; 0.80
C) $7.4 trillion; 0.40
D) $8 trillion; 1.00

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