Refer to the information provided in Figure 8.1 below to answer the questions that follow. Figure 8.1
-Refer to Figure 8.1. The MPS for this household is ________ and the MPC is ________.
A) 0.4; 0.6
B) 0.5; 0.5
C) 0.2; 0.8
D) 0.3; 0.7

Question

Refer to the information provided in Figure 8.1 below to answer the questions that follow.  Figure 8.1
-Refer to Figure 8.1. The MPS for this household is ________ and the MPC is ________.
A) 0.4; 0.6 
B) 0.5; 0.5 
C) 0.2; 0.8 
D) 0.3; 0.7

Quizplus · Accepted Answer

The MPS can be calculated by dividing the change in saving by the change in income, which is 0.2/0.4 = 0.5. The MPC can be calculated by subtracting the MPS from 1, which is 1 - 0.5 = 0.5. Therefore, the MPS is 0.5 and the MPC is 0.5. As for the best choice, it is not clear what the question is referring to without further context.

Refer to the Information Provided in Figure 8