Question : Determine the value of MPS & MPC from the following consumption function, C= 75+0.8Y.
 

Option 1: 0.4, 0.6
 

Option 2: 0.2, 0.8
 

Option 3: 0.5,0.5
 

Option 4: 0.6,0.4
 


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: 0.2, 0.8


Solution : MPS= 0.2, MPC= 0.8
Hence, Option B is correct.

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