Answer:
The Marginal Propensity to Consume (MPC), Marginal Propensity to Save (MPS), and the spending multiplier are important concepts in economics that describe how changes in spending affect the overall economy. To calculate these values, we need more information, specifically the change in spending (ΔY) and the initial change in autonomous spending (ΔA).
Marginal Propensity to Consume (MPC): The MPC is the proportion of an additional dollar of income that a household or individual will spend. If you have information on ΔY and ΔC (change in consumption), you can calculate the MPC using the formula:
MPC = ΔC / ΔY
Marginal Propensity to Save (MPS): The MPS is the proportion of an additional dollar of income that a household or individual will save. It is complementary to the MPC. You can calculate the MPS using the following formula:
MPS = 1 - MPC
Spending Multiplier (K): The spending multiplier, also known as the Keynesian multiplier, measures the effect of an initial change in spending on the overall level of income in the economy. It is calculated using the formula:
K = 1 / (1 - MPC) = 1 / MPS
If you provide specific values for ΔY and ΔA (the initial change in autonomous spending), we can calculate the MPC, MPS, and the spending multiplier for that particular scenario. These values are context-dependent and require numerical data to compute accurately.
Step-by-step explanation: