Question

Planned ConsumptionPlanned SavingPlanned InvestmentReal GDP
$6,000-$1,000$1,000$5,000
10,0000-10,000
14,0001,000-15,000
18,0002,000-20,000
22,000--25,000
26,000--30,000

According to the above table, the marginal propensity to consume is

A) 0.6.

B) 0.5.

C) 0.75.

D) 0.8.

Answer

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