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If Matt's Disposable Income Increases from $4,000 to $4,500 and His

Question 44

Multiple Choice

If Matt's disposable income increases from $4,000 to $4,500 and his level of saving increases from $200 to $325, it may be concluded that his marginal propensity to:


A) Consume is .80
B) Consume is .75
C) Consume is .60
D) Save is .30

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