If the MPC Is Three Quarters,then an Increase in Disposable

question 285

Multiple Choice

If the MPC is three quarters,then an increase in disposable income will cause

• A)consumption to rise by three times the increase in disposable income.
• B)consumption to rise by four times the increase in disposable income.
• C)consumption to increase,while saving decreases.
• D)consumption to decrease,while saving increases.
• E)consumption and saving both to increase,with consumption increasing more than saving.

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