Exhibit 8-1 Disposable income and consumption data
In Exhibit 8-1, when disposable income (Y) is increased from $1,000 to $2,000, the marginal propensity to consume is:
A) 0.2.
B) 0.6.
C) 0.8.
D) 1.0.
E) 1.25.
Correct Answer:
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