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(Advanced Analysis)If the Equation for the Consumption Schedule Is C

Question 92

Multiple Choice

(Advanced analysis) If the equation for the consumption schedule is C = 20 + .8Y,where C is consumption and Y is disposable income,then the average propensity to consume is 1 when disposable income is:


A) $80.
B) $100.
C) $120.
D) $160.

Correct Answer:

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