-How Much Is the Marginal Propensity to Consume When Disposable

question 258

Multiple Choice

$$\begin{array} { c c } \text { Disposable Income } & \text { Consumption } \\0 & \$ 200 \text { billion } \\\$ 200 \text { billion } & 300 \text { billion } \\400 \text { billion } & 400 \text { billion } \\600 \text { billion } & 500 \text { billion } \\800 \text { billion } & 600 \text { billion }\end{array}$$
-How much is the marginal propensity to consume when disposable income rises from $600 billion to $800 billion?

• A).5
• B).65
• C).75
• D).85
• E)Cannot be determined

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