Multiple Choice
Exhibit 8-1 Disposable income and consumption data
In Exhibit 8-1, when disposable income (Y) is increased from $0 to $1,000 to $2,000, the marginal propensity to consume:
A) is 1.
B) decreases from 0.9 to 0.8.
C) decreases from 0.8 to 0.7.
D) increases from 0.8 to 0.9.
E) is negative.
Correct Answer:
Verified
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