Solved

-Using the Data in Above Table, the Marginal Propensity to

Question 111

Multiple Choice

 Disposable  income  (dollars)   Consumption  exp enditure (dollars)  100225200300300375400450500525600600\begin{array} { | l | l | } \hline \begin{array} { l } \text { Disposable } \\\text { income } \\\text { (dollars) }\end{array} & \begin{array} { l } \text { Consumption } \\\text { exp enditure (dollars) }\end{array} \\\hline 100 & 225 \\\hline 200 & 300 \\\hline 300 & 375 \\\hline 400 & 450 \\\hline 500 & 525 \\\hline 600 & 600 \\\hline\end{array}
-Using the data in above table, the marginal propensity to consume is


A) equal to 1.0 when disposable income equals $600.
B) constant at 0.75.
C) increasing as disposable income increases.
D) constant at 0.25.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents