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    Exam 16: The Influence of Fiscal Policy on Aggregate Demand
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    If an Individual's Income Increases from $500 to $700 and Their
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If an Individual's Income Increases from $500 to $700 and Their

Question 37

Question 37

Multiple Choice

If an individual's income increases from $500 to $700 and their spending increases by $120, what is the marginal propensity to consume?


A) 0.6
B) 1.67
C) 2.5
D) 60

Correct Answer:

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