If the MPC Is 0

question 158

Multiple Choice

If the MPC is 0.95, then a $10 million increase in disposable income will

• A)increase consumption by $200 million.
• B)increase consumption by $9.5 million.
• C)decrease consumption by $105 million.
• D)increase consumption by $950 million.
• E)increase consumption by 0.5 million.

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