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If Two Successive Levels of Disposable Personal Income Are $160

Question 48

Multiple Choice

If two successive levels of disposable personal income are $160 and $190 billion, respectively, and if the change in consumption spending is $20 billion between these two levels of disposable personal income, then the MPC will equal


A) .50.
B) .67.
C) .80.
D) .20.
E) 1.50.

Correct Answer:

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