Refer to the information provided in Table 8.4 below to answer the questions that follow.
Table 8.4
-Refer to Table 8.4. Assuming society's MPC is constant, at an aggregate income of $1,000 aggregate saving would be
A) $50.
B) $150.
C) $225.
D) $425.

Question

Refer to the information provided in Table 8.4 below to answer the questions that follow.
Table 8.4 
-Refer to Table 8.4. Assuming society's MPC is constant, at an aggregate income of $1,000 aggregate saving would be
A) $50. 
B) $150. 
C) $225. 
D) $425.

Quizplus · Accepted Answer

The MPC is constant, so the MPS is also constant. The MPS is 1 - MPC, so the MPS is 0.25. At an aggregate income of $1,000, aggregate saving would be $1,000 * 0.25 = $250.

Refer to the Information Provided in Table 8