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STAMFORD COLLEGE FOUNDATION STUDY IN BUSINESS (SEMESTER 1) PRINCIPLES OF ECONOMICS Answer ALL questions.

oppugn 1 |National Output |Consumption |Investment | |($, million) |($, million) |($, million) | |500 |575 |75 | |625 |675 |75 | |750 |775 |75 | |875 |875 |75 | |1100 |975 |75 | |1125 |1075 |75 | |1500 |1375 |75 | a)         Calculate Marginal Propensity to Consume (MPC) and explain what it means. MPC= dc/dy When Y change by 1, C go out change by 0.8 = 100/125 = 0.8 (3 marks) b)         Show the function of use of goods and services and function of saving for this economy. Consumption function = a + by Saving function= Y- C 575= a + 0.8 (500) = Y-(175+0.8Y)... If you want to get a full essay, order it on our website: Ordercustompaper.com

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