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Suppose Disposable Income for an Entire Economy Rises from $400

Question 93

Multiple Choice

Suppose disposable income for an entire economy rises from $400 billion to $440 billion and desired consumption rises from $350 billion to $380 billion.We can conclude that the marginal propensity to consume for this economy is


A) 0.65.
B) 0.75.
C) 0.80.
D) 0.90.
E) 1.33.

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