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

Question 123

Multiple Choice

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


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

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