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Suppose Total Disposable Income in Country X Rises by $500

Question 101

Multiple Choice

Suppose total disposable income in Country X rises by $500 billion while total consumption rises by $50 billion.What would be the slope of the consumption function for this nation?


A) 1
B) 0.1
C) 0.5
D) 0.25
E) 0.4

Correct Answer:

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