Answer the question on the basis of the following data: $\begin{array}{cc}
\underline{\text { After-Tax Income} } &\underline{ \text { Consumption }} \
\$ 1,000 & \$ 900 \
2,000 & 1,800 \
3,000 & 2,700 \
4,000 & 3,600 \
5,000 & 4,500
\end{array}$ The data indicate that:
A) consumers spend 80 percent of their after-tax incomes.
B) consumers spend 90 percent of their after-tax incomes.
C) a tax reduction will reduce consumption.
D) the relationship between consumption and after-tax income is random.

Question

Answer the question on the basis of the following data: $\begin{array}{cc}
\underline{\text { After-Tax Income} } &\underline{ \text { Consumption }} \
\$ 1,000 & \$ 900 \
2,000 & 1,800 \
3,000 & 2,700 \
4,000 & 3,600 \
5,000 & 4,500
\end{array}$  The data indicate that:
A) consumers spend 80 percent of their after-tax incomes.
B) consumers spend 90 percent of their after-tax incomes.
C) a tax reduction will reduce consumption.
D) the relationship between consumption and after-tax income is random.

Quizplus · Accepted Answer

The data provided does not indicate anything about tax reduction or any random relationship between consumption and after-tax income. However, it indicates that consumers spend 90 percent of their after-tax incomes.

Answer the Question on the Basis of the Following Data