Question

An economy is in Equilibrium , calculate MPS , when Y = 500 , autonomus saving = -30 , I = 70 ___ Urgent

Answer 1

Heya...

Solution :-
___________

Given ____

National income ( Y ) = 500
Autonomous saving = -30
Investment (I) = 70

At equilibrium level ...

S = I

Autonomous saving + MPS (Y) = I
-30+MPS(500) = 70
500(MPS) = 70+30
500(MPS) = 100

MPS = 100/500

= 0.2 Answer ...

Thank you

Answer 2

Answer:

Solution :

Given

National income (Y) = 500

Autonomous saving = -30

Investment (1) = 70

At equilibrium level ...

S=I

Autonomous saving + MPS (Y) = 1 500(MPS) = 100

-30+MPS(500) = 70 500(MPS) = 70+30

MPS = 100/500

= 0.2 Answer...

Thank you