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    Marginal propensity to consume

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    A firm purchases a new computer system for $1M. If the marginal propensity to consume is 0.8, the final change in national income will be

    a. $800,000

    b. $1M

    c. $1.2M

    d. $4M

    e. $5M

    Which answer is correct, can you explain

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    https://brainmass.com/economics/macroeconomics/marginal-propensity-to-consume-274274

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    A firm purchases a new computer system for $1M. If the marginal propensity to consume is 0.8, the final change in ...

    Solution Summary

    Responses discusses the impact of marginal propensity to consume on Income

    $2.19