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Question
Income Savings
| Real Disposable Income per Year | Planned Real Consumption per Year |
| $0 | $1,000 |
| 1,000 | 1,800 |
| 2,000 | 2,600 |
| 3,000 | 3,400 |
| 4,000 | 4,200 |
| 5,000 | 5,000 |
| 6,000 | 5,800 |
| 7,000 | 6,600 |
| 8,000 | 7,400 |
| 9,000 | 8,200 |
| 10,000 | 9,000 |
In the above table, the average propensity to consume when income is $10,000 is
A) 0.8.
B) 0.2.
C) 0.0.
D) 0.9.
Answer
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