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    Exam 10: Basic Macroeconomic Relationships
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    The Graph Above Shows the Relationship Between Consumption and Income
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The Graph Above Shows the Relationship Between Consumption and Income

Question 3

Question 3

Multiple Choice

  The graph above shows the relationship between consumption and income. The ratio LM/PL would be a measure of the: A)  Marginal propensity to consume B)  Marginal propensity to save C)  Average propensity to consume D)  Average propensity to save The graph above shows the relationship between consumption and income. The ratio LM/PL would be a measure of the:


A) Marginal propensity to consume
B) Marginal propensity to save
C) Average propensity to consume
D) Average propensity to save

Correct Answer:

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