Given the following table, fill in the values of the marginal propensity to save (MPS)and the marginal propensity to consume (MPC). Show that the MPC + MPS = 1. The numbers in the table are in billions of dollars.
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Definitions:
Second Best
A concept in economics that suggests if all optimal conditions cannot be satisfied, the second-best option should be pursued.
Distortionary Tax
Taxes that cause people to alter their behavior in a way that distorts the allocation of resources from their most efficient uses.
Economic Choices
Decisions made by individuals, households, or firms regarding the allocation of scarce resources to satisfy needs and wants.
Income Tax
A tax levied by governments on individuals or entities' income, constituting a major source of government funding.
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