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Suppose That After Disposable Income Increases by $500 Billion,consumption Expenditures

Question 19

Multiple Choice

Suppose that after disposable income increases by $500 billion,consumption expenditures increase by $450 billion.Therefore,the marginal propensity to consume would be


A) 1.11
B) 9.00
C) 0.09
D) 0.90
E) 0.82

Correct Answer:

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