If Disposable Income Increases by $500 Million, and Consumption Increases

question 239

Multiple Choice

If disposable income increases by $500 million, and consumption increases by $400 million, then the marginal propensity to consume is

• A)1.25.
• B)0.8.
• C)0.6.
• D)0.4.
• E)0.2.

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Definitions:

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