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    Exam 25: Spending and Output in the Short Run
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    If Consumption Increases by $9 When Disposable Income Increases by $10
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If Consumption Increases by $9 When Disposable Income Increases by $10

Question 145

Question 145

Multiple Choice

If consumption increases by $9 when disposable income increases by $10, the marginal propensity to consume (mpc) equals:


A) 0.1.
B) 0.9.
C) 1.0.
D) 9.0.

Correct Answer:

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