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If Your Disposable Income Increases from $30,000 to $35,000 and Your

Question 96

Multiple Choice

If your disposable income increases from $30,000 to $35,000 and your consumption increases from $11,000 to $12,000, your marginal propensity to consume (MPC) is:


A) 0.2.
B) 0.4.
C) 0.5.
D) 0.8.
E) 1.0.

Correct Answer:

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