Use the Table Below to Answer the Following Questions

question 53

Multiple Choice

Use the table below to answer the following questions.
Table 27.1.1
The following table shows the relationship between consumption
expenditure (C) and disposable income (YD) for a hypothetical economy.

-Refer to Table 27.1.1. The marginal propensity to consume is

• A)increasing as YD increases.
• B)equal to 1 when YD equals $600.
• C)0.75.
• D)0.25.
• E)1.33.

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