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(Table 1: Economic Data for Macroland) Table 1 Shows Economic

Question 38

Multiple Choice

(Table 1: Economic Data for Macroland) Table 1 shows economic data for Macroland. Assume that Macroland is not involved in any international trade. Use the data in Table 1 to determine the marginal propensity to consume in Macroland.
 Table 1. Economic Data for Macroland  Income  Consumption  Spending  Government  Spending  Investment  Spending  Aggregate  Expenditures $0$50 billion $100 billion $50 billion $200 billion $100 billion $120 billion $100 billion $50 billion $270 billion $200 billion $190 billion $100 billion $50 billion $340 billion $300 billion $260 billion $100 billion $50 billion $410 billion \begin{array}{c}\hline \text { Table 1. Economic Data for Macroland }\\\begin{array}{|l|l|l|l|l|}\hline {\text { Income }} & {\begin{array}{c}\text { Consumption } \\\text { Spending }\end{array}} & \begin{array}{c}\text { Government } \\\text { Spending }\end{array} & \begin{array}{c}\text { Investment } \\\text { Spending }\end{array} & \begin{array}{c}\text { Aggregate } \\\text { Expenditures }\end{array} \\\hline \$ 0 & \$ 50 \text { billion } & \$ 100 \text { billion } & \$ 50 \text { billion } & \$ 200 \text { billion } \\\hline \$ 100 \text { billion } & \$ 120 \text { billion } & \$ 100 \text { billion } & \$ 50 \text { billion } & \$ 270 \text { billion } \\\hline \$ 200 \text { billion } & \$ 190 \text { billion } & \$ 100 \text { billion } & \$ 50 \text { billion } & \$ 340 \text { billion } \\\hline \$ 300 \text { billion } & \$ 260 \text { billion } & \$ 100 \text { billion } & \$ 50 \text { billion } & \$ 410 \text { billion }\\\hline\end{array}\end{array}


A) 1.75
B) .75
C) .7
D) .25

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