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    Exam 8: Aggregate Expenditure and Output in the Short Run
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    If Disposable Income Falls by $50 Billion and Consumption Falls
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If Disposable Income Falls by $50 Billion and Consumption Falls

Question 130

Question 130

Multiple Choice

If disposable income falls by $50 billion and consumption falls by $40 billion, then the slope of the consumption function is


A) 1.20.
B) 0.80.
C) 0.70.
D) 0.20.
E) 0.10.

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