CUET UG 2025 — Economics Macro

The correct option is:
MPS = 0.5; APC = 0.75

---

Calculation:

At the income level of $Y = 200$Y=200 (where consumption $C = 150$C=150 and previous income $Y_0 = 100$Y0​=100, previous consumption $C_0 = 100$C0​=100):

1. Average Propensity to Consume (APC):

$$APC = \frac{C}{Y} = \frac{150}{200} = \mathbf{0.75}$$APC=YC​=200150​=0.75

1. Marginal Propensity to Save (MPS):

$$\Delta Y = 200 - 100 = 100$$ΔY=200−100=100

$$\Delta C = 150 - 100 = 50$$ΔC=150−100=50

$$MPC = \frac{\Delta C}{\Delta Y} = \frac{50}{100} = 0.5$$MPC=ΔYΔC​=10050​=0.5

$$MPS = 1 - MPC = 1 - 0.5 = \mathbf{0.5}$$MPS=1−MPC=1−0.5=0.5