-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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