If the consumption function is C = 200 + 0.8Y,which of the following is true?
A) This economy's consumption is 300 when income is 100.
B) When income increases by 100,consumption increases by 90.
C) This economy's consumption is 200 when income is 0.
D) The marginal propensity to consume in this economy is .2.
E) When income increases by 100,consumption increases by 20.
Correct Answer:
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