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Suppose Consumption Is $20,000 When Income Is $32,000 and the MPC

Question 234

Multiple Choice

Suppose consumption is $20,000 when income is $32,000 and the MPC equals 0.8. When income increases to $40,000, consumption is

A) $26.400.
B) $28,000.
C) $32,000.
D) $72,000.

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