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If an Increase in a Household's Disposable Income from $10,000

Question 78

Multiple Choice

If an increase in a household's disposable income from $10,000 to $12,000 boosts its consumption expenditure from $8,000 to $9,000, the


A) household is dissaving.
B) slope of the consumption function is 0.2.
C) slope of the consumption function is 0.5.
D) slope of the consumption function is 1,000.

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