Multiple Choice
If the marginal propensity to consume,MPC,is less than 1 and a household's disposable income increases by $2,000,the household's consumption will _____.
A) increase by less than $2,000
B) increase by $2,000
C) decrease if the total income of the household is above $100,000
D) remain the same unless the change in income significantly affects the household's wealth
E) increase by more than $2,000
Correct Answer:

Verified
Correct Answer:
Verified
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