Answer
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
If household savings increase from $500 to $600 when disposable income increases from $400 to $800,...
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