If the proportion of disposable income that is saved equals 0-80- What.pdf

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The document asks what the slope of the consumption function is given that the proportion of disposable income that is saved equals 0.80. The slope of the consumption function is equal to 1 minus the marginal propensity to consume (MPC).

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If the proportion of disposable income that is saved equals 0.80, What is the stope 0 the
consumption function? A) more information is required B) 80% C) 1-MPC D) 0.20 E) 0.80

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