An economy is in equilibrium. From the following data, calculate the marginal propensity to save:
- Income = 10,000
- Autonomous consumption = 500
- Consumption expenditure = 8,000
CBSE OUTSIDE DELHI - SET 3 2017
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$\text{C}=\overline{\text{C}}+\text{mpc}\left({\text{Y}}\right)$$8000=500+\text{mpc}\left(10000\right)$
$\text{mpc}=\frac{7500}{10000}=0.75$
${\text {so mps}}= 1-0.75=0.25{\text{ }\text{or}}\frac{1}{4}$
$\text{mpc}=\frac{7500}{10000}=0.75$
${\text {so mps}}= 1-0.75=0.25{\text{ }\text{or}}\frac{1}{4}$
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