In: Economics
(a.) Total Consumption (C) = 66
C = 10 + 0.8 (Yd) , where, 10 = autonomous consumption , 0.8 = MPC or b , Yd = 70 .
10 + 0.8 (70) = 66 is Consumption .
● Total Saving (S) = Y - C ,where Y = 70 and C = 66 , S = 70 - 66 = 4
Total Saving (S) is 4.
( b.) MPC = 0.8 ( which is given in the equation i.e., C = 10 + 0.8 (Yd) .
MPS = 1 - MPC i.e., 1 - 0.8 = 0.2 , MPS = 0.2