Refer to the information provided in Table 24.5 below to answer the question(s) that follow.
Table 24.5
All Numbers are in $ Million
-Refer to Table 24.5. Assuming constant MPC, at income of $1,200 million, saving is $________ million, at income of $1,600 million, saving is $________ million.

Question

Refer to the information provided in Table 24.5 below to answer the question(s) that follow.
Table 24.5
All Numbers are in $ Million 
-Refer to Table 24.5. Assuming constant MPC, at income of $1,200 million, saving is $________ million, at income of $1,600 million, saving is $________ million.

Quizplus · Accepted Answer

Given MPC = 0.8
Saving = 1 - MPC
At income of $1,200 million, saving = (1-0.8)($1,200 million) = $240 million
At income of $1,600 million, saving = (1-0.8)($1,600 million) = $320 million
Therefore, the answer is B) 160; 240.

Refer to the Information Provided in Table 24