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Consider the Following Data A)087
B)1

Question 31

Multiple Choice

Consider the following data. What is the marginal propensity to consume in this economy?  Consumption  (millions of  S)   Investment  (millions of  $)   Government  Expenditure  (millions of  $)   Exports  (millions of  $)   Imports  (millions of  $)   Real  GDP  (millions of  $)  1,0005255753003001,3001,4005255753003001,9001,8005255753003002,5002,2005255753003003,1002,6005255753003003,7003,0005255753003004,300\begin{array} { | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Consumption } \\\text { (millions of } \\\text { S) }\end{array} & \begin{array} { c } \text { Investment } \\\text { (millions of } \\\text { \$) }\end{array} & \begin{array} { c } \text { Government } \\\text { Expenditure } \\\text { (millions of }\\\text { \$) }\end{array} & \begin{array} { c } \text { Exports } \\\text { (millions of }\\\text { \$) }\end{array} & \begin{array} { c } \text { Imports } \\\text { (millions of } \\\text { \$) }\end{array} & \begin{array} { c } \text { Real } \\\text { GDP } \\\text { (millions of } \\\text { \$) }\end{array} \\\hline 1,000 & 525 & 575 & 300 & 300 & 1,300 \\\hline 1,400 & 525 & 575 & 300 & 300 & 1,900 \\\hline 1,800 & 525 & 575 & 300 & 300 & 2,500 \\\hline 2,200 & 525 & 575 & 300 & 300 & 3,100 \\\hline 2,600 & 525 & 575 & 300 & 300 & 3,700 \\\hline 3,000 & 525 & 575 & 300 & 300 & 4,300 \\\hline\end{array}


A) 0.87
B) 1.5
C) 0.5
D) 0.67

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