(Advanced Analysis)Answer the Question on the Basis of the Following

question 36

Multiple Choice

(Advanced analysis) Answer the question on the basis of the following before-tax consumption schedule for an economy: $\begin{array}{l}\text { Gross Domestic }\\\underline{\text { Product (GDP) } } & \underline{\text { Consumption (C) }} \\\$100 & \$1 40 \\200 & 200 \\300 & 260 \\400 & 320 \\500 & 380\end{array}$ Refer to the data.If a 10 percent proportional tax on income is imposed,the consumption schedule will now be:

• A)
• \(\begin{array} { l }
• \underline{ \text { GDP } }&\underline{\text { C} }\\
• \$100&\$134\\
• 200 &188 \\
• 300 & 242 \\
• 400 &296 \\
• 500&350 \\
• \end{array}\)
• B)
• \(\begin{array} { l }
• \underline{ \text { GDP } }&\underline{\text { C} }\\
• \$100&\$144\\
• 200 &212 \\
• 300 & 78 \\
• 400 &344 \\
• 500&410 \\
• \end{array}\)
• C)
• \(\begin{array} { l }
• \underline{ \text { GDP } }&\underline{\text { C} }\\
• \$100&\$134\\
• 200 &194 \\
• 300 & 254\\
• 400 &324 \\
• 500&374 \\
• \end{array}\)
• D)
• \(\begin{array} { l }
• \underline{ \text { GDP } }&\underline{\text { C} }\\
• \$100&\$146\\
• 200 &218 \\
• 300 & 286 \\
• 400 &352 \\
• 500&412 \\
• \end{array}\)

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