Multiple Choice
If an increase in disposable income causes consumption to increase from $4,000 to $10,000 and causes saving to increase from $2,000 to $4,000,it can be inferred that the MPC equals
A) 0.4.
B) 0.6.
C) 0.5.
D) 0.75.
Correct Answer:
Verified
Correct Answer:
Verified
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