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The Nation's Disposable Income Increases by $400 Billion And, as a Result

Question 161

Multiple Choice

The nation's disposable income increases by $400 billion and, as a result, consumer spending increases by $320 billion.Therefore, the MPC equals

A) 0.16.
B) 0.20.
C) 0.60.
D) 0.80.
E) 0.96.

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