PLEASE ANSWER QUICKLY AND SHOW ALL WORK

Disposable Income

Total Consumption

(Billions of dollars per year)

(Billions of dollars per year)

$0

$50

200

210

Using the following information, please answer the following questions

1. What is the MPS?

2. Using information from question 1 above, suppose the autonomous consumption is $50 billion. Write down the consumption function.

3. Draw the consumption function. Show on the graph where savings and dissavings occur.

4. What is the amount of saving when income equals $900 billion?