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Data on After-Tax Income and Consumption Spending for the Adam

Question 29

Multiple Choice

Data on after-tax income and consumption spending for the Adam Smith family are given below:  After-Tax Income  Consumption Spending $9,000$18,100$14,000$22,600$19,000$27,100$24,000$31,600\begin{array}{|r|r|}\hline {\text { After-Tax Income }} & \text { Consumption Spending } \\\hline \$ 9,000 & \$ 18,100 \\\hline \$ 14,000 & \$ 22,600 \\\hline \$ 19,000 & \$ 27,100 \\\hline \$ 24,000 & \$ 31,600 \\\hline\end{array} Based on these data, the Adam Smith family has a marginal propensity to consume equal to: 


A) 0.9.
B) 0.8.
C) 0.75.
D) 0.6.

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