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    Macroeconomics Study Set 12
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    Exam 9: Aggregate Expenditure and Output in the Short Run
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    If the MPC Is 0
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If the MPC Is 0

Question 127

Question 127

Multiple Choice

If the MPC is 0.95, then a $12 million increase in disposable income will:


A) increase saving by $11.4 million.
B) increase saving by $0.6 million.
C) increase consumption by $6 million.
D) increase consumption by $950 million.

Correct Answer:

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