Question : What is the value of MPS in the following savings function S= -100+0.2Y and also determine saving at the Y=1000.
Option 1: -100, 100
Option 2: 0.2, 100
Option 3: 0.8, 100
Option 4: None of the above.
Answer (1)
24th Jan, 2024
Correct Answer: 0.2, 100
Solution : S= -100+0.2Y
MPS= 0.2
S= -100+0.2(1000)
S= 100
Hence, Option B is correct.
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