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If Disposable Income Increases by $100 and Consumption Increased by $85,ceteris

Question 22

Multiple Choice

If disposable income increases by $100 and consumption increased by $85,ceteris paribus,we may conclude that


A) the marginal propensity to consume is 0.85.
B) the marginal propensity to consume is 0.15.
C) $15 is autonomous consumption.
D) a change in disposable income is induced by a change in consumption.

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