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If Matt's Disposable Income Increases from $4,000 to $4,500 and His

Question 16

Multiple Choice

If Matt's disposable income increases from $4,000 to $4,500 and his level of saving increases from $200 to $325, it may be concluded that his marginal propensity to


A) consume is 0.80.
B) consume is 0.75.
C) consume is 0.60.
D) save is 0.30.

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