Assume that Jane's marginal propensity to consume equals 0.8, and that in 2004 Jane spent $36,000 from her disposable income of $40,000. If her disposable income in 2005 increased to $50,000, her consumption spending increased by
A) $4,000
B) $8,000
C) $9,000
D) $10,000
E) $14,000
Ans: B) $8,000
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