If Real Disposable Income Increased by $10,000 and Real Consumption

question 207

Multiple Choice

If real disposable income increased by $10,000 and real consumption spending increased by $7,500,what is the marginal propensity to consume (MPC) ?

• A) 0.25
• B) 1.0
• C) 0.75
• D) 1.75
• E) 1.25

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Definitions:

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