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If Consumption Is $5,000 When Income Is $5,000, and Consumption

Question 43

Multiple Choice

If consumption is $5,000 when income is $5,000, and consumption increases to $10,000 when income increases to $12,000, the marginal propensity to save is:


A) 0.71.
B) 0.43.
C) 0.33.
D) 0.29.

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