Question
Real GDP, consumption, and the marginal propensity to consume (MPC) for five hypothetical countries are shown in the following table. Use the table to answer
Real GDP, consumption, and the marginal propensity to consume (MPC) for five hypothetical countries are shown in the following table. Use the table to answer the questions below.
Country A. Real GDP billions: $60, Consumption billions: $50, MPC: 0.80
Country B. Real GDP billions: $70, Consumption billions: $78, MPC: 0.90
Country C. Real GDP billions: $90, Consumption billions: $90, MPC: 0.95
Country D. Real GDP billions: $140, Consumption billions: $116, MPC: 0.75
Country E. Real GDP billions: $240, Consumption billions: $220, MPC: 0.95
Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign () in front of thosenumbers.
a. Enter the current level of saving in the appropriate column in the table.
b. Now suppose that GDP increases by $60 billion in each of the five countries.Whatwill bethenew level of savingin each country?Enter your answers in the appropriate column in the table.
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