Assume that consumption in the United States is $9,000 billion in 2009 . If the MPC is 0.8 and disposable income increases by $1,000 billion in 2010, then the level of consumption in 2010 will be
a. $10,000 billion.
b. $9,800 billion.
c. $9,000 billion.
d. $7,200 billion.
b
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a. True b. False Indicate whether the statement is true or false
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