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If Smith's Disposable Income Increases from $1,200 to $1,700 and Her

Question 12

Multiple Choice

If Smith's disposable income increases from $1,200 to $1,700 and her level of saving increases from minus $100 to a plus $100, it may be concluded that her marginal propensity to:


A) save is three-fifths.
B) consume is one-half.
C) consume is three-fifths.
D) consume is one-sixth.

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