Level of Consumption Savings MPC MPS APC APS output 240 -4 260 280 300 8 320 12 340 16 360 20 380 24 400 28 Question 1: a. Fill in the blanks b. What is the break even level of income c. What is the term used by economists for the saving situation shown at the $ 240 level of income d. For each of the following indicate what happens to it when the income changes (constant, increase or decrease) . APC . APS . MPC . MPS Question 2: Suppose a $100 increase in desired investment spending ultimately results in a $300 increase in real GDP. What is the size of the multiplier? Question 3: Private closed economy firms increase investments spending by 2 million, assume MPC= 0.75 what is the new level of GDP? 2 Million 112 GDP