Refer to the information provided in Table 8.1 below to answer the questions that follow.
Table 8.1
-Refer to Table 8.1. Assuming society's MPC is constant at an aggregate of income of $300, aggregate consumption would be
A) $425.
B) $350.
C) $325.
D) $305.

Question

Refer to the information provided in Table 8.1 below to answer the questions that follow.
Table 8.1 
-Refer to Table 8.1. Assuming society's MPC is constant at an aggregate of income of $300, aggregate consumption would be
A) $425. 
B) $350. 
C) $325. 
D) $305.

Quizplus · Accepted Answer

Given a constant MPC (marginal propensity to consume), the aggregate consumption at an income level of $300 can be calculated by adding the autonomous consumption (the part of consumption that does not depend on income) to the consumption that results from the income level, considering the MPC. Without the specific values from Table 8.1, the correct answer cannot be directly calculated here. However, assuming the question implies that with an MPC constant and an income of $300, the consumption is $350, it suggests that the consumption includes both autonomous spending and spending induced by the income level, fitting the general formula for consumption: C = autonomous consumption + MPC * income.

Refer to the Information Provided in Table 8