Answer:
Explanation:
I needed to solve this in my book in other to explain better. The two pictures show the both question and it is explained very well. Thank you and i hope it helps.
Distinguish between medium and higher level education withillustration.
1 answer:
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Answer: B
The marginal propensity to save will remain unchanged in each of the countries.
Explanation:
Marginal propensity to consume (MPC) is the percentage of increase or decrease in income that goes to consumption
Marginal propensity to save (MPS) is the percentage of increase or decrease in income that goes into savings. It can also be expressed as:
1 - MPC
Average propensity to save measures the level of saving at a given level of income.
The marginal propensity to save measures changes in savings relative to changes in income but the income remains unchanged here, the MPS also remains unchanged.
