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Consumption Is $5,900 When Income Is $6,000, and Consumption Rises

Question 24

Multiple Choice

Consumption is $5,900 when income is $6,000, and consumption rises to $6,800 when income is $7,000. What is the marginal propensity to consume?

A) 0.9
B) 0.1
C) 1.11
D) 0.2

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