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Suppose When John's Income Increases from $10,000 to $15,000, His

Question 224

Multiple Choice

Suppose when John's income increases from $10,000 to $15,000, his consumption increases from $3,000 to $4,500. What is the value of his marginal propensity to save?


A) 0.7
B) 0.3
C) 0.2
D) 0.8

Correct Answer:

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