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If Disposable Income Is $900 Billion When the Average Propensity

Question 17

Multiple Choice

If disposable income is $900 billion when the average propensity to consume is 0.9, it can be concluded that:

A) The marginal propensity to consume is also 0.9
B) The marginal propensity to save is 0.1
C) Consumption is $900 billion
D) Saving is $90 billion

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