Can someone explain how to do this (1 Viewer)

[mmmmmmmmaaaaaaa]

Is someone able to explain how to solve this question?

thanks

 

[jimmysmith560]

Would the following explanation help?

The key to this question is that △Y = △C + △S.

To illustrate how we get there:
We know that MPS = △S/△Y, and MPC = △C/△Y and that MPS + MPC = 1.

Combining these two things, this means that △C/△Y + △S/△Y = 1, and if we multiply both sides by △Y, we get:
△Y = △C + △S

Relating it to this question.
△Y = 100 + 100 = 200

From there we calculate MPC and multiplier
MPC = △C/△Y = 100/200 = 0.5

k = 1/(1-MPC) = 1/0.5 = 2

 

[mmmmmmmmaaaaaaa]

Would the following explanation help?

The key to this question is that △Y = △C + △S.

To illustrate how we get there:
We know that MPS = △S/△Y, and MPC = △C/△Y and that MPS + MPC = 1.

Combining these two things, this means that △C/△Y + △S/△Y = 1, and if we multiply both sides by △Y, we get:
△Y = △C + △S

Relating it to this question.
△Y = 100 + 100 = 200

From there we calculate MPC and multiplier
MPC = △C/△Y = 100/200 = 0.5

k = 1/(1-MPC) = 1/0.5 = 2

Yes that helps

Thank you