Suppose Consumption Is $10,000 When Income Is $9,000 and the Marginal

question 203

Multiple Choice

Suppose consumption is $10,000 when income is $9,000 and the marginal propensity to save equals 0.1. When income increases to $9,500, consumption will be:

• A) $10,500.
• B) $10,050.
• C) $10,450.
• D) $8,500.

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