Name 1) The dwarves of Moria are notoriously frugal with their riches-they have very high levels of savings. Out of the $100 million in disposable income the dwarves earned last year, they only spent $40 million. a) What is their average propensity to consume? b) What is their average propensity to save? c) Dwarf economists have concluded that the inhabitants of Moria would consume 60 cents of each additional dollar earned over and above their current disposable income of $100 million. What is their marginal propensity to consume? d) What is their marginal propensity to save? e) There have been recent discoveries of new precious metals in the mines of Moria The mining industry has increased its investment in pick axes and mining carts by an additional $1million in light of this new business opportunity. Assuming the country was not at full employment before the discoveries, how much would we expect Moria's GDP to increase as a result of this new investment? (Hint: Use the multiplier equation)