Suppose a household has a total income of $60,000 and pays $15,000 in taxes. If the MPC is 0.8, then how much is the household's total consumption? Suppose a household has a total income of $60,000 and pays $15,000 in taxes. If the MPC is 0.8, then how much is the household's total saving?

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The Marginal Propensity to Consume MPC is the proportion of additional income that a ... View the full answer