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    consumption function

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    If consumption increases by $12 billion when real disposable income increases by $15 billion, What is the value of the MPC? What is the relationship between the MPC and the MPS? If the MPC rises, what must happen to the MPS? How is the MPC related to the consumption function? How is the MPS related to the saving function?

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    https://brainmass.com/economics/income-distribution/consumption-function-17158

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    MPC = dC / d Yd = 12/15= 0.8
    <br>The relationship between the MPC and the MPS ...

    Solution Summary

    How is the MPS related to the saving function

    $2.19