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If a Household's Disposable Income Increases from $50, 000 to $100

Question 45

Multiple Choice

If a household's disposable income increases from $50, 000 to $100, 000 and its consumption increases from $40, 000 to $80, 000, the MPS must be _____.


A) 0.4
B) 0.8
C) 0.7
D) 0.2
E) 0.5

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