If your disposable income increases from $30,000 to $35,000 and your consumption increases from $11,000 to $12,000, your marginal propensity to consume (MPC) is:
A. 0.2.
B. 0.4.
C. 0.5.
D. 0.8.
Answer: A
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A) consumption goods B) services C) physical capital D) knowledge
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