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If Disposable Income Is $900 Billion When the Average Propensity

Question 120

Multiple Choice

If disposable income is $900 billion when the average propensity to consume is 0.9, it can be concluded that


A) the marginal propensity to consume is also 0.9.
B) the marginal propensity to save is 0.1.
C) consumption is $900 billion.
D) saving is $90 billion.

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