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Consumption Is $3,600 When Income Is $4,000, and Consumption Rises

Question 17

Multiple Choice

Consumption is $3,600 when income is $4,000, and consumption rises to $4,400 when income is $5,000. What is the marginal propensity to consume?

A) 0.9
B) 0.2
C) 0.8
D) 0.5

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