If disposable income increases from $5 trillion to $6 trillion and, as a result, consumption expenditure increases from $7 trillion to $7.8 trillion, the MPC is
A) 1.0.
B) 6 ÷ 7 = 0.86.
C) 6 ÷ 7.8 = 0.77.
D) 5 ÷ 7 = 0.71.
E) 0.8.
E
Economics
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