Y $ 500 $ 600 $ 700 $ 800 $ 900 $1,000 $500 $10 $20 $60 $590 $10 $20 $40 $680 $10 $20 $20 $770 $10 $20 $00 $860 $10 $20 -$20 $950 $10 $20 -$40 a. What is the MPC? b. What is the MPS? C. What is the MPI? ditures at each
Hello. Since you have posted multiple parts of the question and not specified which part of the question needs to be solved, we will solve the first three part of the question for you. If you want any other specific question to be solved, then please resubmit only that question or specify that part only.
a. MPC represent the slope of the (C)consumption function which can be defined as the change in the consumption with respect to the income level. Here in this case the data for the national income, aggregate consumption(C), aggregate investment(I), government spending(G) and net trade(X) is given.
So,
MPC = change in aggregate consumption/change in national income
= 90/100
= 0.9
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