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Suppose That When Disposable Income Rises from $5

Question 87

Multiple Choice

Suppose that when disposable income rises from $5.2 trillion to $6.0 trillion,consumption rises from $5.0 trillion to $5.6 trillion.What is the marginal propensity to consume?


A) 0.25
B) 0.33
C) 0.75
D) 0.67
E) 0.07

Correct Answer:

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