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If Disposable Income Increases from $5 Trillion to $6 Trillion

Question 44

Multiple Choice

If disposable income increases from $5 trillion to $6 trillion and, as a result, consumption expenditure increases from $7 trillion to $7.8 trillion, the MPC is


A) 1.0.
B) 0.8.
C) 5 ÷ 7 = 0.71.
D) 6 ÷ 7.8 = 0.77.
E) 6 ÷ 7 = 0.86.

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