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Suppose That Personal Income Rises from $3000 to $4000 Per

Question 112

Multiple Choice

Suppose that personal income rises from $3000 to $4000 per month,and consumption rises from $2000 to $2600 per month.If taxes are 25 percent of income,what must marginal propensity to consume be?


A) 0.60
B) 0.70
C) 0.80
D) 0.90

Correct Answer:

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