$$\begin{array} { | c | c | }
\hline \text { Disposable Income } & \text { Consumption } \
\hline \$ 300 & \$ 310 \
\hline 350 & 340 \
\hline 400 & 370 \
\hline 450 & 400 \
\hline 500 & 430 \
\hline
\end{array}$$ The table shows a consumption schedule. At the $300 level of disposable income,
A) the marginal propensity to save is 0.80.
B) the average propensity to consume is 0.60.
C) the average propensity to save is 0.30.
D) there is a dissaving of $10.

Question

$$\begin{array} { | c | c | } 
\hline \text { Disposable Income } & \text { Consumption } \
\hline \$ 300 & \$ 310 \
\hline 350 & 340 \
\hline 400 & 370 \
\hline 450 & 400 \
\hline 500 & 430 \
\hline
\end{array}$$ The table shows a consumption schedule. At the $300 level of disposable income,
A) the marginal propensity to save is 0.80.
B) the average propensity to consume is 0.60.
C) the average propensity to save is 0.30.
D) there is a dissaving of $10.

Quizplus · Accepted Answer

At the $300 level of disposable income, consumption is $310, which means spending is $10 more than income, indicating dissaving of $10.

The Table Shows a Consumption Schedule