Question

S = -50 + 0.2Y , what will be MPC​

Answer 1

Answer:

ANSWER

At equilibrium level of income, Savings = investment

=>−100 +0.2Y=5,000

=>0.2Y = 5,000 + 100

=>0.2Y= 5,100

=> Y= 5,100 / 0.2 = 25,500