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Suppose the Value of Marginal Propensity to Save (MPS) Is

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Suppose the value of marginal propensity to save (MPS) is 0.25, investment is £300 and autonomous consumption is £250 in a closed economy with no government sector. What is the equilibrium national output?


Definitions:

Transportation of Property

The process of moving goods or possessions from one location to another, often involving logistical planning and legal considerations.

Constructive Possession

Refers to the legal doctrine where an individual is deemed to possess something, even if they don't physically have it, due to their power or intention to control it.

Present Intent

Present intent is a legal term referring to a person's immediate intention or determination to perform a particular act or to enter into a contract at the current moment.

Delivery

The process of transferring goods from one party to another.

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