The amount by which consumption increases when disposable income increases by $1 is called:
A) an automatic stabilizer.
B) the consumption function.
C) the marginal propensity to consume.
D) autonomous expenditure.
Correct Answer:
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A)increases.
B)decreases.
C)may either increase
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A)amount
Q35: As disposable income increases, consumption:
A)increases.
B)decreases.
C)may either increase
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