If the Marginal Propensity to Consume Is Equal to 0

question 83

Multiple Choice

If the marginal propensity to consume is equal to 0.70 and income rises by $20 billion,then consumption spending will rise by

• A)$ 6 billion
• B)$14 billion
• C)$20 billion
• D)$28 billion
• E)$67 billion

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