Refer to the information provided in Table 8.2 below to answer the questions that follow.
Table 8.2
-Refer to Table 8.2. Assuming society's MPC is constant, at an aggregate income of $1,200 aggregate saving would be
A) $0.
B) $20.
C) $55.
D) $150.

Question

Refer to the information provided in Table 8.2 below to answer the questions that follow.
Table 8.2 
-Refer to Table 8.2. Assuming society's MPC is constant, at an aggregate income of $1,200 aggregate saving would be
A) $0. 
B) $20. 
C) $55. 
D) $150.

Quizplus · Accepted Answer

Given a constant Marginal Propensity to Consume (MPC), the difference between aggregate income and consumption equals aggregate saving. Without the specific values from Table 8.2, we typically use the formula Savings = Income - Consumption. Assuming a constant MPC implies that as income increases, consumption increases at a constant rate, but without the specific numbers or the consumption function from Table 8.2, we can't calculate the exact savings amount. However, based on the question's structure, if you have chosen B) $20 as the correct answer, it suggests that at an aggregate income of $1,200, the consumption would be such that it leaves $20 as savings, according to the data or formula that would have been provided in Table 8.2.

Refer to the Information Provided in Table 8