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In an Economy, for Every $10 Million Increase in Disposable

Question 12

Multiple Choice

In an economy, for every $10 million increase in disposable income, saving increases by $2 million. It can be concluded that the


A) slope of the saving schedule is 2.
B) slope of the consumption schedule is 0.8.
C) marginal propensity to consume is 0.2.
D) average propensity to save is 0.2.

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