Question
Complete the following table.
|
Income |
Saving |
MPC |
APS |
|
0 |
-12 |
||
|
20 |
-6 |
— |
— |
|
40 |
0 |
— |
— |
|
60 |
6 |
— |
— |
Solution
|
Income
|
Saving |
Consumption |
MPC (ΔC/ΔY) |
APS (S/Y) |
|
0 |
-12 |
12 |
— |
— |
|
20 |
-6 |
26 |
0.70 (=14/20) |
-0.30 (= -6/20) |
|
40 |
0 |
40 |
0.70 |
0.00 |
|
60 |
6 |
. 54 |
0.70 |
0.10 |
