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    Assume That the Consumption Function Is C = 200
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Assume That the Consumption Function Is C = 200

Question 86

Question 86

Multiple Choice

Assume that the consumption function is C = 200 + 0.8Y. The marginal propensity to consume is:


A) 0.8.
B) 1.0.
C) 0.9.
D) 0.2.

Correct Answer:

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