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When a $ 2 , 0 0 0 increase in income causes a $ 1 , 7 5 0 increase in consumption spending: Question 1

When a $2,000 increase in income causes a $1,750 increase in consumption spending:
Question 1 options:
a)
the marginal propensity to save (MPS) is 0.20.
b)
the marginal propensity to consume (MPC) is 0.80.
c)
the marginal propensity to consume (MPC) is 0.875
d)
then MPC - MPS =1.

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