If Q = K²L² the MP_K is A)constant B)diminishing C)increasing

Question

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The MPS (Marginal Propensity to Save) formula is given by the change in saving (ΔS) divided by the change in income (ΔY). In the given expression, "²" represents a pattern where saving increases as income increases, but the rate of increase in saving remains constant (as indicated by the consistent pattern of S1). However, the MPS formula specifically looks at the change in saving relative to the change in income, not the absolute level of saving. The expression "MP_K" suggests that as income increases (indicated by "U1"), the MPS is being considered at different levels of income, but the MPS itself remains constant (as indicated by "B1" for the base level and "B0" for the comparison level, suggesting no change in the MPS). However, the correct interpretation of the given expression in the context of the question indicates that the MPS is actually increasing, which is a misunderstanding of the provided symbols and their intended meaning. The correct interpretation should focus on the change in saving relative to the change in income, which is not directly provided by the given expression. Therefore, the correct answer should be based on the standard economic principle that MPS can either be constant or change (increase or decrease) depending on the specific economic model or context, but the provided expression does not accurately reflect these principles.

If Q = K2L2 the MPK Is

If Q = K²L² the MP_K Is