Multiple Choice
Which of the following changes in disposable income would lead to the smallest increase in consumption?
A) a $30 000 increase in disposable income, if MPC equals 0.25
B) a $15 000 increase in disposable income, if MPC equals 0.6
C) a $20 000 increase in disposable income, if MPC equals 0.5
D) a $12 000 increase in disposable income, if MPC equals 0.75
Correct Answer:
Verified
Correct Answer:
Verified
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