Essay
Suppose that the linear equation for consumption in a hypothetical economy is C = 50 + 0.9 Y.Also suppose that income (Y) is $400.Determine the following: (a) MPC; (b) MPS; (c) level of consumption; (d) APC; (e) APS.
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(a) MPC = 0.9.(b) MPS = 0.1.(c...View Answer
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