2. The marginal propensity to consume measures the a. increase in consumer spending when disposable income rises

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2. The marginal propensity to consume measures the

a. increase in consumer spending when disposable income rises by $1.

b. increase in consumer spending when investment spending rises by $1.

c. increase in consumer spending when taxes rise by $1.

d. increase in disposable income when consumer spending rises by $1.

e. increase in disposable income when investment spending rises by $1.

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Macroeconomics In Modules

ISBN: 978-1464139055

3rd Edition

Authors: Paul Krugman ,Robin Wells

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