Assume you have the following model of the expenditure sector: AD  = C + I + G + NX         C = Co + cYD       YD = Y - TA + TR       TA  = TAo      TR  = TRo                             I = Io                                 G = Go                         NX = NXo  If a  change in taxes by ∆TA = - 400 leads to an change in income by ∆Y = + 1,200, how large is the marginal propensity to save?

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