National Income Equilibrium and Level MPC (With Diagram)

Get the answer of: What happens to the National Income Equilibrium when Level MPC Increases or Decreases? Since MPC = 1 – MPS an increase in MPS implies a fall in MPS. The MPS measures the slope of the saving line. It is expressed as ΔS/ΔY. Thus if MPC increases and MPS falls the saving line becomes flatter, i.e., its [...]