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Answer the Question on the Basis of the Following Data

Question 30

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Answer the question on the basis of the following data:  After-Tax Income Consumption $1,000$9002,0001,8003,0002,7004,0003,6005,0004,500\begin{array}{cc}\underline{\text { After-Tax Income} } &\underline{ \text { Consumption }} \\\$ 1,000 & \$ 900 \\2,000 & 1,800 \\3,000 & 2,700 \\4,000 & 3,600 \\5,000 & 4,500\end{array} The data indicate that:


A) consumers spend 80 percent of their after-tax incomes.
B) consumers spend 90 percent of their after-tax incomes.
C) a tax reduction will reduce consumption.
D) the relationship between consumption and after-tax income is random.

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