Find S when $¯ C = 200, MPC = 0.4$ and $Y = 1, 000$ .

Open in App

Solution

We know that, $S = - ¯ S + MPC(Y)$

We also know that saving is negative to the extent where consumption is positive, when $Y=0$ .

So that $- ¯ S = - 200$

Substituting the given values, we get:

$S = - 200 + 0.4 (1, 000)$

$= - 200 + 400 = 200$

Suggest Corrections

Similar questions

Find C, when $¯ C = 200, MPC = 0.5$ and $Y = 1, 000$ .

Find equilibrium S and equilibrium I when Y = 4,400, MPC = 0.75, and $¯ C = 100.$

Δ Y

Δ S

If MPC = 0.4 and $Δ Y = 1, 000,$ what will be $Δ S$ ?

Find equilibrium S and equilibrium I when: Y = 4,400, MPC = 0.75 and $¯ C = 100$ .

Join BYJU'S Learning Program