Answer:
Given: National Income, \[Y=50\] Saving, \[S=5\] We know, \[APC=\frac{C}{Y}=\frac{Y-S}{Y}\] Substituting the values, \[APC=\frac{50-5}{50}0.90\] Now given, Y = 60 S = 9 we know \[APC=\frac{C}{Y}=\frac{Y-S}{Y}=\frac{60-9}{60}=0.85\] Now, \[MPS=\frac{\Delta S}{\Delta Y}\] Or, \[MPS=\frac{9-5}{60-50}=\frac{4}{10}=0.40\]
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