Question
Complete the following table:
Income
Marginal Propensity to Consume
Saving
Average Propensity to Save
0
-
-90
-
100
0.75
-
-
200
0.75
-
-
300
0.75
-
-

Answer

Income [Y] MPC MPC = 1 - MPC $\Delta\text{S}=\text{MPS}\times\Delta\text{Y}$ Saving (S) $\text{APS}=\frac{\text{S}}{\text{Y}}$
0 - - - -90 -
100 0.75 0.25 25 -65 -0.65
200 0.75 0.25 25 -40 -0.2
300 0.75 0.25 25 -15 -0.05

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