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If Carol's Disposable Income Increases from $1,200 to $1,700 and Her

Question 140

Multiple Choice

If Carol's disposable income increases from $1,200 to $1,700 and her level of saving increases from minus $100 to a plus $100, her marginal propensity to


A) save is three-fifths.
B) consume is one-half.
C) consume is three-fifths.
D) consume is two-fifths.

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