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Holly's Break-Even Level of Income Is $10,000 and Her MPC

Question 59

Multiple Choice

Holly's break-even level of income is $10,000 and her MPC is 0.75.If her actual disposable income is $16,000, her level of:

A) consumption spending will be $14,500.
B) consumption spending will be $4,500.
C) consumption spending will be $13,000.
D) saving will be $2,500.

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