The Table Given Below Reports the Consumption Expenditure of a Nation

question 98

Multiple Choice

The table given below reports the consumption expenditure of a nation at different levels of disposable income.
Table 9.1
$\begin{array}{|c|c|}\hline \text { Disposable Income }\left(Y_{2}\right) & \text { Consumption }(C) \\\hline \$ {0}& \$ 4,500 \\\hline \$ 10,000 & \$ 12,000 \\\hline \$ 15,000 & \$ 15,750 \\\hline \$ 25,000 & \$ 23,250 \\\hline \$ 30,000 & \$ 27,000 \\\hline \$ 35,000 & \$ 30,750 \\\hline \$ 40,000 & \$ 34,500 \\\hline \$ 50,000 & \$ 42,000 \\\hline\end{array}$
-Refer to Table 9.1. At an income level of $45,000, the average propensity to save would equal:

• A) 0.15.
• B) 0.75.
• C) 0.25.
• D) 0.20.
• E) 0.80.

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Definitions:

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