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If Income Increased by $20,000,investment Spending Is Fixed at $5,000,government

Question 66

Multiple Choice

If income increased by $20,000,investment spending is fixed at $5,000,government purchases are fixed at $10,000,net exports are fixed at $500,and aggregate expenditure increases by $15,000,what is the marginal propensity to consume (MPC) ?


A) 0.25
B) 0.75
C) 0.33
D) 0.50
E) 0.70

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