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If We Know That the Slope of the Consumption Function

Question 12

Multiple Choice

If we know that the slope of the consumption function is 0.6,then we know that if real disposable income increased by $1,000 billion,real consumption spending would


A) increase by $60 billion
B) increase by $1,000 billion
C) increase by $600 billion
D) increase by $6,000 billion
E) decrease by $6 billion

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