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The Marginal Propensity to Consume

Question 88

Multiple Choice

The marginal propensity to consume


A) shows how much disposable income changes when consumption expenditure decreases.
B) shows how much of an extra dollar of disposable income is consumed.
C) is greater than 1 only if the marginal propensity to save is greater than 1.
D) shows the percentage of disposable income consumed at each level of income.

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