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As Disposable Income Increases, How Is Consumption Spending Affected

Question 62

Multiple Choice

As disposable income increases, how is consumption spending affected?  


A)  Consumption spending increases by the same amount as disposable income increases. 
B)  Consumption spending decreases by the same amount as disposable income increases. 
C)  Consumption spending increases by less than the increase in disposable income. 
D)  Consumption spending decreases by less than the increase in disposable income.

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