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The Fraction of Each Added Dollar of Disposable Income That

Question 6

Multiple Choice

The fraction of each added dollar of disposable income that is used for consumption is called the:


A) average propensity to consume (APC) .
B) autonomous consumption rate (ACR) .
C) marginal consumption propensity (MCP) .
D) marginal propensity to consume (MPC) .
E) total propensity to consume (TPC) .

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