Use the Table Below to Find the Marginal Propensity to Consume

question 99

Multiple Choice

Use the table below to find the marginal propensity to consume.

• A) the marginal propensity to consume cannot be determined from the information given
• B) 0.4
• C) 0.5
• D) 0.6
• E) 0.8

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Definitions:

Proprietorships

A business structure owned by a single individual who is responsible for its liabilities and entitled to its profits.

Corporate Income Tax

A tax imposed on the net income or profit of corporations and other business entities.

Progressive

A tax system where the tax rate increases as the taxable amount increases, making it more burdensome for higher earners.

Excess Burden

The excess burden of a tax is the cost to society in economic welfare that exceeds the revenue raised by the government, often due to distorted market behaviors.