Answer the question on the basis of the following before-tax consumption schedule for a closed economy: $\begin{array}{l}
\text { Gross Domestic }\
\underline{\text { Product (GDP)} } & \underline{\text { Consumption (C) }} \
\$0 & \$ 40 \
100 & 120 \
200 & 200 \
300 & 280 \
400 & 360
\end{array}$ Refer to the data.If a lump-sum tax (the same tax amount at each level of GDP)of $40 is imposed in this economy,the marginal propensity to consume is:

Question

Answer the question on the basis of the following before-tax consumption schedule for a closed economy: $\begin{array}{l}
\text { Gross Domestic }\
\underline{\text { Product (GDP)} } &  \underline{\text { Consumption (C) }} \
\$0 & \$ 40 \
100 & 120 \
200 & 200 \
300 & 280 \
400 & 360
\end{array}$  Refer to the data.If a lump-sum tax (the same tax amount at each level of GDP)of $40 is imposed in this economy,the marginal propensity to consume is:

Quizplus · Accepted Answer

The Answer of Answer the question on the basis of the following before-tax consumption schedule for a closed economy: $\begin{array}{l}
\text { Gross Domestic }\
\underline{\text { Product (GDP)} } &  \underline{\text { Consumption (C) }} \
\$0 & \$ 40 \
100 & 120 \
200 & 200 \
300 & 280 \
400 & 360
\end{array}$  Refer to the data.If a lump-sum tax (the same tax amount at each level of GDP)of $40 is imposed in this economy,the marginal propensity to consume is:

Answer the Question on the Basis of the Following Before-Tax