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1.The marginal propensity to save formula MPS = S YD. When disposable income increases from $5.1 trillion to $5.7 trillion, consumption expenditure changes from $3.4
1.The marginal propensity to save formula MPS = S YD. When disposable income increases from $5.1 trillion to $5.7 trillion, consumption expenditure changes from $3.4 trillion to $3.8 trillion. What is the MPS?
MPS = S YD. Note that, C + S = YD.
a.C consumption expenditure change =____
b.YD disposable income change = _____
To find S, we use C + S = YD.
S = YD-C
c.S =____
MPS = S YD
MPS = _____
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