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Complete the Accompanying Table

Question 3

Essay

Complete the accompanying table. Complete the accompanying table. (a) What is the break-even level of income? How is it possible for households to dissave at very low income levels? (b) If the proportion of total income consumed decreases and the proportion saved increases as income rises, explain how the MPC and MPS can be constant at various levels of income. (a) What is the break-even level of income? How is it possible for households to dissave at very low income levels?
(b) If the proportion of total income consumed decreases and the proportion saved increases as income rises, explain how the MPC and MPS can be constant at various levels of income.

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