Table 13-2 -Refer to Table 13-2. Consider a Simple Economy That Is

Multiple Choice

Table 13-2

-Refer to Table 13-2. Consider a simple economy that is made up of only two sectors, households and firms, and that all investment is autonomous. Further, disposable personal income = real GDP and the economy is currently producing at its level of potential real GDP. What is the marginal propensity to consume in this economy?

A) 0.5
B) 0.6
C) 0.75
D) 0.8