If the consumption function is of the form [C = 60 + 0.9Y], the MPS equals
A. -0.9.
B. 0.1.
C. 0.6.
D. 0.9.
Answer: B
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a. 5 percent of the total income. b. one-fifth as much as the richest fifth of the population. c. 20 percent of society's total income. d. 50 percent of society's total income.