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If Consumption Is $25,000 When Income Is $26,000, and Consumption

Question 12

Multiple Choice

If consumption is $25,000 when income is $26,000, and consumption increases to $25,900 when income increases to $28,000, the marginal propensity to consume is:


A) 0.55.
B) 0.59.
C) 0.65.
D) 0.45.

Correct Answer:

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