Data on After-Tax Income and Consumption Spending for the Adam

question 29

Multiple Choice

Data on after-tax income and consumption spending for the Adam Smith family are given below: $\begin{array}{|r|r|}\hline {\text { After-Tax Income }} & \text { Consumption Spending } \\\hline \$ 9,000 & \$ 18,100 \\\hline \$ 14,000 & \$ 22,600 \\\hline \$ 19,000 & \$ 27,100 \\\hline \$ 24,000 & \$ 31,600 \\\hline\end{array}$ Based on these data, the Adam Smith family has a marginal propensity to consume equal to: 

• A)0.9.
• B)0.8.
• C)0.75.
• D)0.6.

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