-In the above table, there are no taxes (so that that real GDP equals disposable income) and no imports or exports. If real GDP decreases from $6,000 to $5,000, the marginal propensity to consume is
A) 0.80.
B) 0.75.
C) - 750.
D) - 0.75.

Question

-In the above table, there are no taxes (so that that real GDP equals disposable income) and no imports or exports. If real GDP decreases from $6,000 to $5,000, the marginal propensity to consume is
A) 0.80. 
B) 0.75. 
C) - 750. 
D) - 0.75.

Quizplus · Accepted Answer

The Answer of 
-In the above table, there are no taxes (so that that real GDP equals disposable income) and no imports or exports. If real GDP decreases from $6,000 to $5,000, the marginal propensity to consume is
A) 0.80. 
B) 0.75. 
C) - 750. 
D) - 0.75.

-In the Above Table, There Are No Taxes (So That