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Suppose output and income is equal to 24200, the marginal propensity to consume is 0.80, and...

Suppose output and income is equal to 24200, the marginal propensity to consume is 0.80, and autonomous consumption is 200. Calculate total saving for this economy, assuming no public or foreign sector. (Round your answer to the nearest whole number.) Your Answer:

Solutions

Expert Solution

Solution:-

MPC = 0.80

Y = C + S

S = Y - C

S = Y - [200 + 0.80Y]

S = 24,200 - [200 + (0.80 x 24,200)]

S = 24,200 - (200 + 19,360)

S = 24,200 – 19,560

S = 4,640

Rahul Sunny answered 2 years ago
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