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    Foundations of Macroeconomics Study Set 1
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    Exam 14: Aggregate Expenditure Multiplier
  5. Question
    When Disposable Income Increases, Consumption Expenditure
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When Disposable Income Increases, Consumption Expenditure

Question 159

Question 159

Multiple Choice

When disposable income increases, consumption expenditure


A) also increases, but by less.
B) does not change.
C) also increases and by an equal amount.
D) decreases by the same amount.
E) also increases and by more.

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