If the Marginal Propensity to Consume Is 0

question 29

Multiple Choice

If the marginal propensity to consume is 0.85, what change in consumption expenditure would you expect if disposable income increases by $200 million?

• A)$18 million
• B)$170 million
• C)$1,800 million
• D)$180 million
• E)$20 million

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