Question

An economy is in equilibrium. Calculate marginal propensity to save from the following :
National income = 15,000
Investment = 1,000
Autonomous consumption = 500

Answer 1

`Y=bar(C)+(1-MPS) (Y) + I`
`{:( "15,000 = 500+(1-MPS) 15,000 + 1,000"),(" =500+15,000-15,000 MPS + 1,000"):}]`
`{:("15,000 MPS = 16,500-15,000=1,500"),("MPS"=("1,500")/("15,000")=0.1):}]`