Question

and his saving NAME_ Logan received a $2,500 bonus and his MIPS is 0.20. his consumption rises by $_ A) 500; 100 B) 2,500; 200 C) 2,000, 500 D) 2,500; 20 I consumption is S10,000 when income is $10000 and consumption increases to $11.000 when income increases to $12,000, the MPS is A) 0.10. B) 0.25. C) 0.50 D) 0.90 hat ent? .150+ 0.571. his consumption equals his income at an income level of If Zander's saving is of the form (S A) 150. B) 225 C) 300 D) 1,500

Answer 1

Answer
change in saving =MPS*bonus
=0.2*2500
=$500
change in consumption =bonus -saving =2500-500=2000

Option C
===============
Answer
MPC=change in consumption /change in income
=(11000-10000)/(12000-10000)
=0.5
MPS=1-MPC=1-0.5
=0.5

Option C
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Answer
Income equal to consumption when saving is zero

0=-150+0.5Y
0.5Y=150
Y=300

Option C