asked 25.2k views
19 votes
How much will $200 in new spending change equilibrium income if the marginal propensity to save is 0.2

1 Answer

4 votes

Answer:

$250

Step-by-step explanation:

1/MPS=1/(1-0.02)=1.25; 1.25x$200= $250

answered
User XAMT
by
7.7k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.

Categories