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Economics 102Spring 1996

Homework 2 Answer Key

1. d2. b 3. a4. d5. b*

6. a7. d8. a9. e10. c

11. c12. b13. e14. d15. a

16. b17. c18. d19. a20. b

21. c22. a23. b24. c25. b

26. c27. c28. b29. d30. c

31. b32. b33. a34. b35. a

36. d37. b38.c

*MPC is the change in consumption divided by the change in disposable income. It is not really calculable from the diagram. b is the answer the text bank gives.

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