Re: National Income Accounting

Posted by Anjali on May 15, 2014; 5:04pm
URL: http://discussion-forum.276.s1.nabble.com/National-Income-Accounting-tp5051071p7589845.html

0.75 is MPC , so 0.25 is MPS
Private savings are 0.25*12000 = 3000
I suppose that since MPC is mentioned as pvt consumption expenditure
So 0.25 should private MPS , yielding 3000 as private savings
Then S=I + CA
In ques CA deficit is mentioned and it is -500 , so Iam not sure how to put it into this equation