Hooray! You hit your sales number for the quarter and are awarded a $3,000 bonus. You spend $2,100 on a new living room TV and entertainment system and save the rest. What is your MPC and MPS

0.7 and 0.3

Explanation:

Data provided in the question

Awarded bonus value = $3,0000

Spending amount on a new living room = $2,100

So by considering the above information, the MPC and MPS is

As we know that

MPC = change in Consumption spending : change in income

= $2,100 : $3,000

= 0.7

And, the

MPC + MPS = 1

0.7 + MPS = 1

So, the MPS is 0.3