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 imposed in this economy, the marginal
Propensity to consume is

A) 0.8 before taxes and 0.6 after taxes.
B) 0.8 both before and after taxes.
C) 0.6 before taxes and 0.8 after taxes.
D) 0.8 before taxes and 0.4 after taxes.