The following partial data relates to a national economy (all figures in $billions):

-Refer to the above table to answer this question.What is the value of the marginal leakage rate?
A)0
B)0.4
C)0.6
D)1.67
E)2.5

Question

The following partial data relates to a national economy (all figures in $billions):
 
-Refer to the above table to answer this question.What is the value of the marginal leakage rate?
A)0 
B)0.4 
C)0.6 
D)1.67 
E)2.5

Quizplus · Accepted Answer

The marginal leakage rate can be calculated using the formula: Marginal leakage rate = Change in leakages / Change in injections. From the given data, we can see that a $40 billion increase in injections (from $500 billion to $540 billion) resulted in a $16 billion increase in leakages (from $400 billion to $416 billion). Therefore, the marginal leakage rate is:
Marginal leakage rate = (416 - 400) / (540 - 500) = 16/40 = 0.4
Hence, the answer is choice B.

The Following Partial Data Relates to a National Economy (All