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    The marginal propensity to consume

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    Could someone please help with the following true/false question. I am lost on how to figure it out. Thanks so much:)

    Q: The marginal propensity to consume is 0.8 and autonomous expenditures have just increased by $122. Equilibrium income will drop by $488.

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    https://brainmass.com/economics/income-distribution/the-marginal-propensity-to-consume-157691

    Solution Summary

    The marginal propensity to consume is figured.

    $2.19