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? ____________