If the MPC is 0.95, then a $10 million increase in disposable income will Increase consumption by $105 million b. Increase consumption by $9.5 million Decrease consumption by $950 million d. Increase consumption by $200 million
If the MPC is 0.95, then a $10 million increase in disposable income will Increase consumption by $105 million b. Increase consumption by $9.5 million Decrease consumption by $950 million d. Increase consumption by $200 million
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 1.2P
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![Question 3
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If the MPC is 0.95, then a $10 million increase in disposable income will
a. Increase consumption by $105 million
b. Increase consumption by $9.5 million
C. Decrease consumption by $950 million
d. Increase consumption by $200 million
Give your reasons
Į A▾ B I
Ff ▾
!!!
回](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58f901b7-6156-4205-bfff-0a30e8c6c9ed%2F7b715fdc-4acf-4a67-ba45-08c7232d36ca%2F5qdyf68_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 3
Not yet
answered
Flag
question.
If the MPC is 0.95, then a $10 million increase in disposable income will
a. Increase consumption by $105 million
b. Increase consumption by $9.5 million
C. Decrease consumption by $950 million
d. Increase consumption by $200 million
Give your reasons
Į A▾ B I
Ff ▾
!!!
回
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