Suppose that disposable income, consumption, and saving in some country are $400 billion, $350 billion, and $50 billion, respectively. Next, assume that disposable income increases by $40 billion, consumption rises by $30 billion, and saving goes up by $10 billion. a. What is the economy's MPC? Instructions: Round your answers to 2 decimal places. MPC = What is its MPS? MPS b. What was the APC before the increase in disposable income? Instructions: Round your answer to 2 decimal piaces. APC before

Suppose that disposable income, consumption, and saving in some country are $400 billion, $350 billion, and $50 billion, respectively. Next, assume that disposable income increases by $40 billion, consumption rises by $30 billion, and saving goes up by $10 billion. a. What is the economy's MPC? Instructions: Round your answers to 2 decimal places. MPC = What is its MPS? MPS b. What was the APC before the increase in disposable income? Instructions: Round your answer to 2 decimal piaces. APC before

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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