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    Economics A Contemporary Introduction
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    Exam 9: Aaggregate Expenditure and Aggregate Demand
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    If Every Time Disposable Income Increases by $5 Billion,consumption Increases
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If Every Time Disposable Income Increases by $5 Billion,consumption Increases

Question 85

Question 85

Multiple Choice

If every time disposable income increases by $5 billion,consumption increases by $4 billion and saving increases by $1 billion,the MPC and MPS are,respectively,


A) 1/4,1/2
B) 1/2,1/2
C) 1,0
D) 4/5,1/5
E) the answer is indeterminate from the information given

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