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    Foundations of Macroeconomics Study Set 1
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    Exam 14: Aggregate Expenditure Multiplier
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    If Your MPC Is 0
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If Your MPC Is 0

Question 284

Question 284

Multiple Choice

If your MPC is 0.5, then when your disposable income increases by $100, your consumption expenditure increases by


A) $5.
B) $200.
C) $100.
D) $50.
E) $95.

Correct Answer:

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