For an economy, if C = 400 + 0.8 Yd, Yd = Y-T, T = 300 + 0.2Y, find MPC.
(A) 0.93
(B) 0.64
(C) 0.20
(D) 0.81
Answers
Answered by
0
Answer:
option C
Explanation:
it's a long process and I don't want to discuss
Answered by
1
Answer:
C=400+0.8Yd
Yd=Y-T
T=300+0.2Y
C=400+0.8(Y-T)
=400+0.8[Y-300-0.2Y]
= 400+0.8(0.8Y-300)
=400+0.64Y-240
=400-240+0.64Y
C =160+0.64Y
MPC=dc/dy= 0.64
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