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For this exercise, assume Alyssa's real income increases by $10,000. If Alyssa consumes $4,000 of the $10,000, then because the MPC is defined as the
For this exercise, assume Alyssa's real income increases by $10,000. If Alyssa consumes $4,000 of the $10,000, then because the MPC is defined as the change in consumption spending associated with a given change in real income, Alyssa's MPC is . If Alyssa saves $6,000 of the $10,000, then because the MPS is defined as the change in saving associated with a given change in real income, Alyssa's MPS is
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