Let's solve this step-by-step using the given data from the table:
1. Identify the changes in consumption:
- The initial consumption (based on the first row) is \[tex]$1,200.
- The final consumption (based on the third row) is \$[/tex]3,000.
- The change in consumption ([tex]\(\Delta C\)[/tex]) is calculated as the final consumption minus the initial consumption:
[tex]\[
\Delta C = \$3,000 - \$1,200 = \$1,800
\][/tex]
2. Identify the changes in disposable income:
- The initial disposable income (based on the first row) is \[tex]$3,000.
- The final disposable income (based on the third row) is \$[/tex]5,000.
- The change in disposable income ([tex]\(\Delta Y\)[/tex]) is calculated as the final disposable income minus the initial disposable income:
[tex]\[
\Delta Y = \$5,000 - \$3,000 = \$2,000
\][/tex]
3. Calculate the marginal propensity to consume (MPC):
- The Marginal Propensity to Consume (MPC) is the ratio of the change in consumption to the change in disposable income:
[tex]\[
\text{MPC} = \frac{\Delta C}{\Delta Y} = \frac{\$1,800}{\$2,000} = 0.9
\][/tex]
Thus, based on the calculations, the Marginal Propensity to Consume (MPC) is [tex]\(0.9\)[/tex]. Therefore, the correct answer is:
D. 0.9
