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If household savings increase from $500 to $600 when disposable income increases from $400 to $800, the marginal propensity t
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MPC= .75

∆S=600-500

=100

∆Y=800-400

=400

MPS=∆S/∆Y

=100/400

=0.25

So, MPC=1-MPS

=1-0.25

= .75

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