If a $1,000 Increase in Income Leads to a $750

Multiple Choice

If a $1,000 increase in income leads to a $750 increase in consumption expenditures, then the marginal propensity to consume is

A) 0.75 and the multiplier is 1 1/3.
B) 0.75 and the multiplier is 4.
C) 0.25 and the multiplier is 1 1/3.
D) 0.25 and the multiplier is 4.