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1.1. In a country where the value-added tax (VAT) is high and the government does not spend much on subsidies, one would expect GDP at market prices to be A. about the same as GDP at factor prices. B. higher than GDP at basic prices. C. lower than GDP at basic prices. D. about the same as GDP at factor cost. E. on par with other countries with a similar size GDP. In 2019 a country's nominal GDP was 500 billion in the relevant currency. In 2020 the same country's nominal GDP was 600 billion in the relevant currency. The inflation rate in the country in 2020 was 17%. What is the approximate value of the country's real GDP in 2020 (at 2019 prices)? A. 513 billion in the relevant currency of the country B. 498 billion in the relevant currency of the country C. 600 billion in the relevant currency of the country D. 587 billion in the relevant currency of the country E. 655 billion in the relevant currency of the country Siya's weekly disposable income increases from R2 000 to R2 500. As a result, his weekly savings increase from R300 to R450. This implies that his marginal propensity to consume is the following: A. 0.30 B. 0.70 C. 0.76 D. 0.82 E. Cannot be calculated with the information given