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If Income Increases from $3,000 Per Month to $3,500 Per

Question 3

Multiple Choice

If income increases from $3,000 per month to $3,500 per month and consumption rises from $2,800 per month to $3,200 per month, what is the marginal propensity to consume?


A) 1.25
B) 0.8
C) 1.09
D) 0.91

Correct Answer:

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