In: Economics
Complete the following table assuming that (a) MPS = 0.2, (b) there is no government and all saving is personal saving.(mps=marginal propensity to save)
Hint: mps = S1 - S0 / Y1 - Y0
Level of output and income |
Total Consumption |
Total Saving |
200 |
210 |
____________ |
225 |
____________ |
____________ |
250 |
____________ |
____________ |
275 |
____________ |
____________ |
300 |
____________ |
____________ |
Suppose a family's annual disposable income is 8,000 of which it saves 3,900.
(a) What is their APC (average propensity to consume)? ____________
(b) If their income rises to 9,500 and they plan to save 4,400 , what are their MPS and ____________ MPC? ____________