Question

17. Given the following info: O 820 900 1000 1100 1200 1300 1400 900 980 1060 1140 this question is continued

a. Calculate saving if Y = $1000. b. Calculate the MPC if Y changes from $1000 to $1100. c. Calculate the MPS if Y changes fr

help me please

0 0
Add a comment Improve this question Transcribed image text
Answer #1

a) If Y is 1000 then the consumption is 820 then the saving will be 1000 - 820 = $180. As saving = total income - consumption.

b) MPC = Change in the consumption / Change in the income

900-820 / 1100 - 1000 = 80 / 100 = 0.8 the MPC in the economy is 0.8 only.

c) MPS = 1 - MPC = 1 - 0.8 = 0.2, the MPS in the market is 0.2.

Add a comment
Know the answer?
Add Answer to:
help me please 17. Given the following info: O 820 900 1000 1100 1200 1300 1400...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT