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    If the Marginal Propensity to Consume Is 0
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If the Marginal Propensity to Consume Is 0

Question 148

Question 148

Multiple Choice

If the marginal propensity to consume is 0.5 and disposable income decreases by $10,000,by how much will consumption spending decrease?


A) $10,000
B) $500
C) $50
D) $5,000
E) $9,524

Correct Answer:

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