-Using the Data in Above Table, the Marginal Propensity to

question 279

Multiple Choice

$$\begin{array} { | l | l | } \hline \begin{array} { l } \text { Disposable } \\\text { income } \\\text { (dollars) }\end{array} & \begin{array} { l } \text { Consumption } \\\text { exp enditure (dollars) }\end{array} \\\hline 100 & 225 \\\hline 200 & 300 \\\hline 300 & 375 \\\hline 400 & 450 \\\hline 500 & 525 \\\hline 600 & 600 \\\hline\end{array}$$
-Using the data in above table, the marginal propensity to consume is

• A) equal to 1.0 when disposable income equals $600.
• B) constant at 0.75.
• C) increasing as disposable income increases.
• D) constant at 0.25.

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Definitions:

Payment to Suppliers

Financial transactions that involve settling debts with vendors who provide goods or services to a business.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Backlog

Orders that have been received but not delivered to the customer.

Orders Received

The total number of orders that a company gets from its customers within a certain period.