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AE Model: Components
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AE Model: Components
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15. Deriving the Aggregate Expenditures Model / AE Model: Components / Problem 3
Problem 3
What is the marginal propensity to consume?
A
The change in consumption resulting from a change in disposable income.
B
The total amount of consumption at zero income.
C
The change in income resulting from a change in consumption.
D
The ratio of total consumption to total income.
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