Answer:
Given: National Income, Y = 80 Consumption Expenditure, C = 64 We know, APS = \[\frac{S}{Y}=\frac{C-Y}{Y}\] Substituting the values, APS = \[\frac{80-64}{80}=0.2\] Now given, Y = 100 C = 78 We know, APC = \[\frac{C}{Y}\] APC = \[\frac{78}{100}=0.78\] Also, \[MPC=\frac{\Delta C}{\Delta Y}=\frac{78-64}{100-80}=\frac{14}{20}=0.70\]
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