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    Economics Principles and Policy Study Set 2
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    Exam 24: Aggregate Demand and the Powerful Consumer
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    If Disposable Income Increases by $400 Billion and Consumption Increases
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If Disposable Income Increases by $400 Billion and Consumption Increases

Question 54

Question 54

Multiple Choice

If disposable income increases by $400 billion and consumption increases by $300 billion, the MPC equals


A) 0.75.
B) 0.60.
C) 0.80.
D) 0.68.

Correct Answer:

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