If Every Time Disposable Income Increases by $5 Billion,consumption Increases

question 85

Multiple Choice

If every time disposable income increases by $5 billion,consumption increases by $4 billion and saving increases by $1 billion,the MPC and MPS are,respectively,

• A)1/4,1/2
• B)1/2,1/2
• C)1,0
• D)4/5,1/5
• E)the answer is indeterminate from the information given

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