Refer to the information provided in Figure 24.4 below to answer the question(s) that follow. Figure 24.4
-Refer to Figure 24.4. Along aggregate expenditure AE₁, the MPS will be

Question

Refer to the information provided in Figure 24.4 below to answer the question(s) that follow. Figure 24.4 -Refer to Figure 24.4. Along aggregate expenditure AE₁, the MPS will be

Quizplus · Accepted Answer

The slope of the aggregate expenditure line is the MPC (marginal propensity to consume), which in this case is 0.8. The MPS (marginal propensity to save) is the complement of the MPC (1 minus the MPC), which is 0.2. Therefore, the MPS along the aggregate expenditure line AE₁ is 0.2.

Refer to the Information Provided in Figure 24