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

Question 128

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}{cc}\underline { \text { After-tax Income }} & \underline { \text { Consumption Spending }} \\\$ 9,000 & \$ 18,100 \\\$ 14,000 & \$ 22,600 \\\$ 19,000 & \$ 27,100 \\\$ 24,000 & \$ 31,600\end{array}
Based on these data,the Adam Smith family has a marginal propensity to consume of:


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

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