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15. Income and Consumption
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Problem 15
15. Income and Consumption
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15. Income and Consumption / The Consumption Function / Problem 2
Problem 2
If a household receives a \$5,000 bonus, which of the following is the most likely outcome?
A
Neither consumption nor savings will change.
B
Only consumption will increase.
C
Both consumption and savings will increase.
D
Only savings will increase.
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