Question

Find the MPS , when the Y is 500, I is 70, -S in 30 with equilibrium level

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

Thanks for your question!! ✌

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TO FIND MPS ;

GIVEN,

NATIONAL INCOME (Y) = 500

INVESTMENT (I) = 70

AUTONOMOUS SAVING = - 30

NOW,,

EQUILIBRIUM LEVEL

S = l

SAVING + Y (MPS) = l

- 30 +MPS (500) = 70+30

500 (MPS) = 100

MPS = 100 / 500

= 0.2

YOUR ANSWER =)) 0.2

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THANKS ☺☺