Scenario 16-2

Multiple Choice

Scenario 16-2. The following facts apply to a small, imaginary economy.
• Consumption spending is $5,200 when income is $8,000.
• Consumption spending is $5,536 when income is $8,400.
-Refer to Scenario 16-2. The marginal propensity to consume for this economy is

A) 0.650.
B) 0.659.
C) 0.650 or 0.659, depending on whether income is $8,000 or $8,400.
D) 0.840.