Scenario 34-2

question 89

Multiple Choice

Scenario 34-2.The following facts apply to a small,imaginary economy.
• Consumption spending is $6,720 when income is $8,000.
• Consumption spending is $7,040 when income is $8,500.
-Refer to Scenario 34-2.The marginal propensity to consume for this economy is

• A)0.64.
• B)0.83.
• C)0.56.
• D)0.840.