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Suppose Disposable Income Increases from $5 Trillion to $6 Trillion

Question 54

Multiple Choice

Suppose disposable income increases from $5 trillion to $6 trillion. As a result, consumption expenditure increases from $4 trillion to ________. This result means the MPC equals ________.


A) $4.5 trillion; 4.50
B) $5 trillion; 0.80
C) $4.8 trillion; 0.80
D) $6 trillion; 1.00

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