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If Income Increases from $110,000 to $120,000 and Consumption from $108,000

Question 207

Multiple Choice

If income increases from $110,000 to $120,000 and consumption from $108,000 to $114,000, the marginal propensity to consume is:

A) 0.40.
B) 0.60.
C) 0.94.
D) 1.60.

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