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Calculate the value of mpc and mps

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Reference no: EM132790248

Question 1:

In a 2-sector economy, when the income increases from RM400 million toRM450 million, consumption increases from 200 million to 230 million. The autonomous investment is RM100 million.

a) Calculate the value of MPC and MPS.

b) State the equation of the consumption function, if the autonomous consumption is RM100 million

Reference no: EM132790248

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