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

question 128

Multiple Choice

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

• A)0.9.
• B)0.8.
• C)0.75.
• D)0.6.

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Definitions:

Restaurant

A business that prepares and sells food and drinks to customers.

Tips

A small amount of money given to someone as a way of thanking them for their service or advice, or suggestions intended to provide guidance or advice.

Valid Argument

An argument such that its premises logically imply or entail its conclusion which makes it impossible for all of its premises to be true and its conclusion to be false.