Based on the marginal propensity to save, MPS , the national income will increase by a maximum of $20 billion.
<h3>What is marginal propensity to save?</h3>
Marginal propensity to save (MPS) is a measure of how savings will change, given a change in income.
Marginal propensity to save is related to marginal propensity to consume, MPC by the formula:
Grom the given value of MPS,
MPC = 1 - 0.25
Therefore, MPC = 0.75
Also, the formula for calculating marginal propensity to consume is given as:
- Marginal propensity, MPC = ΔC/ΔY
Where:
- ΔC is a change in consumption
- ΔY is a change in income
ΔY = ΔC/MPC
ΔY = $15 billion/0.75
ΔY = $20 billion
Therefore, the national income will increase by a maximum of $20 billion.
Learn more about marginal propensity to save at: brainly.com/question/18521055
The two-layered sac surrounding the heart is the pericardium.
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The microorganisms found in soil are important because they affect the structure and fertility of soil. Certain bacteria responsible for nitrogen fixation converts nitrogen in the atmosphere, so that it can be used by plants. Because of microbes, nutrients and minerals are made available to plants. Soil with more diverse microbe will result in fewer plant diseases and better crop yield.
