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Scenario 21-1 $10,000\$ 10,000 , Consingtion Spending Is $6,500\$ 6,500 - Whan Income Is

Question 213

Multiple Choice

Scenario 21-1. Take the following information as given for a small, imaginary economy:
- When income is $10,000\$ 10,000 , consingtion spending is $6,500\$ 6,500
- Whan income is $11,000\$ 11,000 , cansumption spending is $7,300\$ 7,300
-Refer to Scenario 21-1. The marginal propensity to consume for this economy is


A) 0.650.
B) 0.664.
C) 0.650 or 0.664, depending on whether income is $10,000 or $11,000.
D) 0.800.

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