Data on Disposable Income and Consumption Spending for the Adam

question 48

Multiple Choice

Data on disposable income and consumption spending for the Adam Smith family are given below:
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.
• E) 0.5.

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Definitions:

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The deliberate focus of attention or awareness on specific stimuli or events in the environment.

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A condition of undergoing pain, distress, or hardship.