Refer to the Given Table, Which Illustrates the Multiplier Process

question 34

Multiple Choice

$\begin{array}{|l|c|c|c|}\hline & \text { Change in income } & \begin{array}{c}\text { Change in } \\\text { Consumption }\end{array} & \text { Change in Saving } \\\hline \text { Assumed Increase in Investment } & \$ 20 & \$ & \$ 4.00 \\\hline \text { Second Round } & \$ & \$ 12.80 & \$ \\\hline \text { All Other Rounds } & \$ & \$ 51.20 & \$ \\\hline \text { Totals } & \$ & \$ & \$ 20.00 \\\hline\end{array}$ Refer to the given table, which illustrates the multiplier process. The marginal propensity to consume is

• A) 0.5.
• B) 0.75.
• C) 0.8.
• D) 0.9.

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