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If the Overall Income in an Economy Increases by $2,000

Question 92

Multiple Choice

If the overall income in an economy increases by $2,000 and consumption spending increases by $1,600 as a result, then the marginal propensity to consume for the economy is:


A) 0.2.
B) 0.4.
C) 0.6.
D) 0.8.

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