To answer the next question, use the information in the table below which illustrates the multiplier process resulting from an autonomous increase in investment by $5. Change in IncomeChange in ConsumptionChange in SavingsAssumed increase in investment$5.00 $1.25Second round $2.81 All other rounds 8.44 Totals   5.00The marginal propensity to consume is

A. 0.75.
B. 0.9.
C. 0.5.
D. 0.8.


Answer: A

Economics

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Economics