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When Disposable Income Increases from $400 Billion to $500 Billion

Question 87

Multiple Choice

When disposable income increases from $400 billion to $500 billion, consumption expenditure increases from $320 billion to $400 trillion. The MPC is

A) $6.8 trillion.
B) 0.60.
C) 1.00.
D) 0.68.
E) 0.80.

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