(Table) the Table Shows Data on Consumption at Various Levels

question 97

Multiple Choice

(Table) The table shows data on consumption at various levels of income. Assume there is no private investment. The value of the marginal propensity to save is

• A) 0.1.
• B) 0.25.
• C) 0.75.
• D) 0.9.

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Definitions:

Flexible Budget

A fiscal planning tool that varies with the levels of output or sales, designed to allocate resources more effectively.

Refurbishing Materials

Materials used in the process of renovating and restoring products or facilities to a like-new condition.

Planning Budget

A budget prepared for a specific level of activity, often used in flexible budgeting to adjust for various activity levels.

Containers Refurbished

The process of cleaning, repairing, and restoring used containers to a usable condition for the same or a new purpose.