Question: Given consumption function in two sector economy C= 300 + 0.7Yd. a) Show how to get the value of MPS. b) What does the 'Yd'

Given consumption function in two sector economy C= 300 + 0.7Yd.

a) Show how to get the value of MPS.

b) What does the 'Yd' in the consumption function refers to? Gross income or Net income? Justify your answer.

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