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    Exam 11: The Income-Expenditure Model
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    An Increase in the Marginal Propensity to Consume Will
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An Increase in the Marginal Propensity to Consume Will

Question 42

Question 42

Multiple Choice

An increase in the marginal propensity to consume will


A) cause the consumption function to be flatter.
B) cause the consumption function to be steeper.
C) shift the consumption function downwards.
D) shift the consumption function upwards.

Correct Answer:

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