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earning uppose that disposable income, consumption, and saving in a country are $500 billion, $400 llion, and $100 billion, respectively. Next, assume that disposable income

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earning uppose that disposable income, consumption, and saving in a country are $500 billion, $400 llion, and $100 billion, respectively. Next, assume that disposable income increases by $50 llion, consumption rises by $45 billion and saving goes up by $5 billion. 1 . What is the economy's MPC? Show your calculations. MPC = AC = 45 = 0.9 Dy 50 2. What is its MPS? Show your calculations. MPS = 1 -MPC = 1 - 0.9 = 0.1 3. What was the APC before and after the increase in disposable income? Show your calculations. 4. What is the multiplier? Show your calculations. Explain the economic meaning of the number

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