Multiple Choice
If the MPC equals 0.75, then
A) for every $100 increase in consumption expenditure, disposable income increases by $75.
B) consumption expenditure is always more than disposable income.
C) for every $100 increase in disposable income, saving increases by $75.
D) for every $100 increase in disposable income, saving increases by $25.
Correct Answer:
Verified
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