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Jack Nelson, a Supervisor in the Hardware Department at Sears

Question 53

Multiple Choice

Jack Nelson, a supervisor in the hardware department at Sears, received a $3,000 increase in his annual disposable income.Suppose his marginal propensity to consume is 0.80.How much of the $3,000 increase will Jack spend on consumption?


A) $2,750
B) $2,500
C) $2,400
D) $2,200
E) $3,000.

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