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Suppose Consumption Is $2,700 Million When Income Equals $2,000 Million

Question 110

Multiple Choice

Suppose consumption is $2,700 million when income equals $2,000 million, and consumption increases to $3,125 million when income equals $2,500. What is the marginal propensity to consume?


A) 425
B) 0.85
C) 0.15
D) 850
E) None of these

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