Refer to the information provided in Table 9.5 below to answer the questions that follow.
Table 9.5
All Numbers are in $ Million
-Refer to Table 9.5. 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 9.5 below to answer the questions that follow.
Table 9.5
All Numbers are in $ Million 
-Refer to Table 9.5. Assuming constant MPC, at income of $1,200 million, saving is $________ million, at income of $1,600 million, saving is $________ million.

Quizplus · Accepted Answer

Using the formula: 
S = Y(1-MPC)
At Y=1200 million, 
S = 1200(1-0.8) = 1200(0.2) = 240 million 
At Y=1600 million, 
S = 1600(1-0.8) = 1600(0.2) = 320 million. 
Therefore, the correct answer is option B.

Refer to the Information Provided in Table 9