The Table Below Shows Disposable Income and Desired Consumption for a Closed

question 28

Multiple Choice

The table below shows disposable income and desired consumption for a closed economy with no government. TABLE 21-1 Refer to Table 21-1.The marginal propensity to consume is equal to

• A)0.8.
• B)0.67.
• C)0.6.
• D)0.4.
• E)0.2.

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Definitions:

Gross National Product

A measure of a country's economic performance, calculating the total value of all goods and services produced over a specific time period, including income from abroad.

Wages Increased

The phenomenon of rising levels of payment made to employees for their labor, typically in response to economic, social, or political factors.