Use the information in the table below to answer questions about the economy of Watis. a. Complete the table assuming that the MPC is constant. Remember to enter a minus (−) sign to indicate negative values. Y C S 0 20 25 35 50 47.5 2.5 75 10 100 72.5 20 b. The value of the MPC is and the value of the MPS is . When necessary, enter your answers rounded to 2 decimal places. c. What are the equations for the consumption function and the saving function? C = - (Click to select) S = + (Click to select)
Question
Use the information in the table below to answer questions about the economy of Watis.
a. Complete the table assuming that the MPC is constant. Remember to enter a minus (−) sign to indicate negative values.
Y C S 0 20 25 35 50 47.5 2.5 75 10 100 72.5 20
b. The value of the MPC is and the value of the MPS is . When necessary, enter your answers rounded to 2 decimal places.
c. What are the equations for the consumption function and the saving function?
C =
(Click to select)
S =
(Click to select)
Solution
I'm sorry, but your question is incomplete. The table you provided is not fully visible and the values for MPC (Marginal Propensity to Consume) and MPS (Marginal Propensity to Save) are not given.
However, I can explain how to approach this problem:
a. To complete the table, you need to know the value of MPC. MPC is the change in consumption divided by the change in income. Once you have the MPC, you can multiply it by the change in income to find the change in consumption. Add this to the initial consumption to find the new consumption.
b. The value of the MPC is the change in consumption divided by the change in income. The value of the MPS is 1 - MPC.
c. The consumption function is C = autonomous consumption + MPC * Y. The saving function is S = -autonomous consumption + MPS * Y.
Autonomous consumption is the amount of consumption that occurs even when income is zero. It can be found from the table where Y = 0.
Please provide the complete information so I can help you solve this problem.
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