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Question
| Real Disposable Income | Planned Real Consumption |
| 0 | 3,000 |
| 2,000 | 4,400 |
| 4,000 | 5,800 |
| 6,000 | 7,200 |
| 8,000 | 8,600 |
| 10,000 | 10,000 |
| 12,000 | 11,400 |
| 14,000 | 12,800 |
Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the average propensity to consume when real disposable income equals $4,000?
A) -0.45
B) 0.69
C) 0.7
D) 1.45
Answer
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