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If the MPC Equals 0.75, Then

Question 428

Multiple Choice

If the MPC equals 0.75, then


A) for every $100 increase in consumption expenditure, disposable income increases by $75.
B) consumption expenditure is always more than disposable income.
C) for every $100 increase in disposable income, saving increases by $75.
D) for every $100 increase in disposable income, saving increases by $25.

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