In the Table Given Below Y Represent the Aggregate Expenditure

question 38

Multiple Choice

In the table given below Y represent the aggregate expenditure of the economy on C = consumption, I = investment, G = government projects, and X = net exports.
Table 9.3
$\begin{array}{c}\text { Aggregate Expenditures }\\\begin{array}{|c|c|c|c|c|}\hline \mathbf{Y} & \mathbf{C} & \mathbf{I} & \mathbf{G} & \mathbf{X} \\\hline \$ 0 & \$ 50 & \$ 75 & \$ 150 & \$ 40 \\\hline \$ 150 & \$ 125 & \$ 75 & \$ 150 & \$ 10 \\\hline \$ 300 & \$ 200 & \$ 75 & \$ 150 & -\$ 20 \\\hline \$ 450 & \$ 275 & \$ 75 & \$ 150 & -\$ 50 \\\hline \$ 600 & \$ 350 & \$ 75 & \$ 150 & -\$ 80 \\\hline\end{array}\end{array}$
-Refer to Table 9.3. Calculate the marginal propensity to consume in the economy.

• A) 0.25
• B) 0.50
• C) 0.75
• D) 0.80
• E) 1.25

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