$$\begin{array} { | c | c | }
\hline \text { Disposable Income } & \text { Consumption } \
\hline \$ 200 & \$ 205 \
\hline 225 & 225 \
\hline 250 & 245 \
\hline 275 & 265 \
\hline 300 & 285 \
\hline
\end{array}$$ Refer to the given data. At the $200 level of disposable income,
A) the marginal propensity to save is 2½ percent.
B) dissaving is $5.
C) the average propensity to save is 0.20.
D) the average propensity to consume is 0.80.

Question

$$\begin{array} { | c | c | } 
\hline \text { Disposable Income } & \text { Consumption } \
\hline \$ 200 & \$ 205 \
\hline 225 & 225 \
\hline 250 & 245 \
\hline 275 & 265 \
\hline 300 & 285 \
\hline
\end{array}$$ Refer to the given data. At the $200 level of disposable income,
A) the marginal propensity to save is 2½ percent.
B) dissaving is $5.
C) the average propensity to save is 0.20.
D) the average propensity to consume is 0.80.

Quizplus · Accepted Answer

At the $200 level of disposable income, consumption is $205, which means spending is $5 more than the income. This indicates dissaving of $5.

Refer to the Given Data