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Refer to the Above Data

Question 43

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Refer to the above data.If a lump-sum tax (the same tax amount at each level of GDP) of $40 is imposed in this economy, the marginal propensity to consume is: A) .8 before taxes and .6 after taxes. B) .8 both before and after taxes. C) .6 before taxes and .8 after taxes. D) .8 before taxes and .4 after taxes. Refer to the above data.If a lump-sum tax (the same tax amount at each level of GDP) of $40 is imposed in this economy, the marginal propensity to consume is:


A) .8 before taxes and .6 after taxes.
B) .8 both before and after taxes.
C) .6 before taxes and .8 after taxes.
D) .8 before taxes and .4 after taxes.

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