Mathematically, it must always be true that: Saving =a. Disposable income+Comsumption b. Comsumption-Disposable income c. Disposable income-Consumption Therefore, it must also be true that:
Mathematically, it must always be true that: Saving =a. Disposable income+Comsumption b. Comsumption-Disposable income c. Disposable income-Consumption Therefore, it must also be true that:
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Suppose Becky gets a sales bonus at her place of work that gives her an extra $400 of disposable income. She chooses to spend $300 and save the remaining $100.
From this, you can tell that Becky's marginal propensity to consume (MPC) is0.75 , and her marginal propensity to save (MPS) is0.25 .
Mathematically, it must always be true that:
| Saving | = |
b. Comsumption-Disposable income
c. Disposable income-Consumption
Therefore, it must also be true that:
| MPS | = |
a. 1-MPC
b. 1+MPC
c. MPC
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