-In the Above Table, C Is Consumption Expenditure, I Is

question 202

Multiple Choice

$$\begin{array} { | l | l | l | l | l | l | } \hline \begin{array} { l } \text { Real } \\\text { GDP }\end{array} & C & I & G & X & M \\\hline 100 & 75 & 25 & 95 & 10 & 1 \\\hline 200 & 150 & 25 & 95 & 10 & 2 \\\hline 300 & 225 & 25 & 95 & 10 & 3 \\\hline 400 & 300 & 25 & 95 & 10 & 4 \\\hline 500 & 375 & 25 & 95 & 10 & 5 \\\hline 600 & 450 & 25 & 95 & 10 & 6 \\\hline 700 & 525 & 25 & 95 & 10 & 7 \\\hline 800 & 600 & 25 & 95 & 10 & 8 \\\hline 900 & 675 & 25 & 95 & 10 & 9 \\\hline 1000 & 750 & 25 & 95 & 10 & 10 \\\hline\end{array}$$
-In the above table, C is consumption expenditure, I is investment, G is government expenditure, X is exports, and M is imports. All entries are in dollars. What is the marginal propensity to consume?

• A) 0.75
• B) 0.20
• C) 0.25
• D) 0.80

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Definitions:

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