Everything Else Held Constant,if Total Consumption Increases from $600 to $800

question 97

Multiple Choice

Everything else held constant,if total consumption increases from $600 to $800 because of an increase of disposable income of $400,then the mpc is equal to

• A)0.2.
• B)0.4.
• C)0.5.
• D)0.6.

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