The Accompanying Table Is the Before-Tax Consumption Schedule for a

Multiple Choice

$$\begin{array} { | c | c | } \hline \text { Gross Domestic Product (GDP) } & \text { Consumption (C) } \\\hline \$ 0 & \$ 40 \\\hline 100 & 120 \\\hline 200 & 200 \\\hline 300 & 280 \\\hline 400 & 360 \\\hline\end{array}$$ The accompanying table is the before-tax consumption schedule for a closed economy. If a lump-sum tax (the same tax amount at each level of GDP) of $40 is now imposed in this economy, the consumption
Schedule will be

A) $$\begin{array} { | r | r | } \hline \text { GDP } & \text { C } \\\hline \$ 0 & \$ 8 \\\hline 100 & 88 \\\hline 200 & 168 \\\hline 300 & 248 \\\hline 400 & 320 \\\hline\end{array}$$
B) $$\begin{array} { | r | r | } \hline \text { GDP } & \text { C } \\\hline \$ 0 & \$ 0 \\\hline 100 & 80 \\\hline 200 & 160 \\\hline 300 & 240 \\\hline 400 & 320 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | } \hline \text { GDP } & \text { C } \\\hline \$ 0 & \$ 10 \\\hline 100 & 90 \\\hline 200 & 170 \\\hline 300 & 250 \\\hline 400 & 310 \\\hline\end{array}$$
D) $$\begin{array} { | c | c | } \hline \text { GDP } & \text { C } \\\hline \$ 0 & \$ 0 \\\hline 100 & 60 \\\hline 200 & 120 \\\hline 300 & 180 \\\hline 400 & 240 \\\hline\end{array}$$