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Suppose When Disposable Personal Income Increases from $10,000 to $15,000

Question 193

Multiple Choice

Suppose when disposable personal income increases from $10,000 to $15,000, consumption increases from $9,000 to $13,000. What is the marginal propensity to consume?


A) 0.2
B) 0.4
C) 0.6
D) 0.8

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