Multiple Choice
20. Suppose that John earns a disposable annual income of $50,000 and allocates $10,000 of this for necessities. Any additional income beyond that is both spent and saved. If John's MPC is 0.8, how much will he spend on non-necessities?
A) $10,000
B) $40,000
C) $32,000
D) $35,000
Correct Answer:
Verified
Correct Answer:
Verified
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