1. If the marginal propensity to save (MPS) is 0.15, Instructions:Round your responses to two decimal places. a. the marginal propensity to consume (MPC) is _______ b. the multiplier is ______
2. Suppose consumers' disposable income increased by $500 billion and their spending increased by $430 billion. What was the MPC?~

Instructions: Round your response to two decimal places.

MPC =

3. Suppose the government increases education spending by $20 billion. If the marginal propensity to consume is 0.96, how much will total spending increase?

Instructions: Round your response to one decimal place.

$ _______ billion