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According to the Consumption Function, If the Level of Real

Question 301

Multiple Choice

According to the consumption function, if the level of real disposable income increases, then


A) both the levels of consumption and savings will increase.
B) the level of consumption will increase but the level of saving will decrease.
C) the level of consumption will decrease but the level of saving will increase.
D) both the levels of consumption and savings will decrease.

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