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(Advanced Analysis)Answer the Question on the Basis of the Following

Question 43

Multiple Choice

(Advanced analysis) Answer the question on the basis of the following before-tax consumption schedule for an economy:  Gross Domestic  Product (GDP)  Consumption (C)  $100$140200200300260400320500380\begin{array}{l}\text { Gross Domestic }\\\underline{\text { Product (GDP) } } & \underline{\text { Consumption (C) }} \\\$100 & \$1 40 \\200 & 200 \\300 & 260 \\400 & 320 \\500 & 380\end{array} Refer to the data.If a 10 percent proportional tax on income is imposed,the consumption schedule will now be:


A)
 GDP  C$100$134200188300242400296500350\begin{array} { l } \underline{ \text { GDP } }&\underline{\text { C} }\\\$100&\$134\\200 &188 \\300 & 242 \\400 &296 \\500&350 \\\end{array}
B)
 GDP  C$100$14420021230078400344500410\begin{array} { l } \underline{ \text { GDP } }&\underline{\text { C} }\\\$100&\$144\\200 &212 \\300 & 78 \\400 &344 \\500&410 \\\end{array}
C)
 GDP  C$100$134200194300254400324500374\begin{array} { l } \underline{ \text { GDP } }&\underline{\text { C} }\\\$100&\$134\\200 &194 \\300 & 254\\400 &324 \\500&374 \\\end{array}
D)
 GDP  C$100$146200218300286400352500412\begin{array} { l } \underline{ \text { GDP } }&\underline{\text { C} }\\\$100&\$146\\200 &218 \\300 & 286 \\400 &352 \\500&412 \\\end{array}

Correct Answer:

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