Bill's disposable income goes from $100 000 in 2011 to $200 000 in 2012,and his consumption spending goes from $80 000 in 2011 to $140 000 in 2012.Which of the following statements about Bill's consumption is accurate?
A) Bill's MPC is equal to 0.6.
B) Bill's MPC is equal to 0.7.
C) Bill's APC rose between 2011 and 2012.
D) Bill's APC is equal to 0.20 in 2011.
Correct Answer:
Verified
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