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    Economics Today Study Set 1
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    Exam 12: Consumption, Real GDP, and the Multiplier
  5. Question
    If Real Disposable Income Increases, the Average Propensity to Consume
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If Real Disposable Income Increases, the Average Propensity to Consume

Question 150

Question 150

Multiple Choice

If real disposable income increases, the average propensity to consume will


A) initially increase, and then decrease.
B) remain constant.
C) increase.
D) decrease.

Correct Answer:

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