(Table: Consumption and Savings) Based on the Table, the Marginal

question 178

Multiple Choice

(Table: Consumption and Savings) Based on the table, the marginal propensity to consume is _____ and the average propensity to consume _____. $$\begin{array} { l c r } \text { Income } & \text { Consumption Spending } & \text { Saving } \\\$ 30,000 & \$ 30,000 & \$ 0 \\40,000 & 35,000 & 5,000 \\50,000 & 40,000 & 10,000\end{array}$$

• A) 0.5; varies with the level of income
• B) $5,000; is $5,000
• C) $10,000; is $35,000
• D) 2; varies with the level of income