Final answer:
The marginal propensity to consume (MPC) in Kadwan is 0.7, and the marginal propensity to save (MPS) is 0.3.
Step-by-step explanation:
The marginal propensity to consume (MPC) in Kadwan is the coefficient of the level of income (Y) in the consumption function (C = 150 + 0.7Y), which in this case is 0.7. This indicates that for every additional unit of income, 0.7 units are consumed. The marginal propensity to save (MPS), which by definition is MPC + MPS = 1, would be 1 - 0.7 = 0.3. The MPS of 0.3 signifies that for every extra unit of income, 0.3 units are saved. Therefore, the MPC and MPS for Kadwan are 0.7 and 0.3, respectively.
The marginal propensity to consume in Kadwan is 0.7, while the marginal propensity to save is 0.3.
The marginal propensity to consume (MPC) represents the amount consumed out of an additional dollar of income, while the marginal propensity to save (MPS) represents the amount saved out of an additional dollar of income. In the given data of Kadwan, the consumption function is C = 150 + 0.7Y, where Y represents national income. Since the coefficient of Y in the consumption function is 0.7, the marginal propensity to consume is 0.7. Consequently, the marginal propensity to save is calculated by subtracting the MPC from 1. So, the marginal propensity to save in Kadwan is 1 - 0.7 = 0.3.