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Suppose disposable income increases by$2,000 $2,000. As a result, consumption increases by$1,500 $1,500. Answer the questions based on this information. Where appropriate, enter your answer
Suppose disposable income increases by$2,000
$2,000. As a result, consumption increases by$1,500
$1,500. Answer the questions based on this information. Where appropriate, enter your answer as a decimal rather than as apercentage.
(1) The increase in savings resulting directly from this change in incomeis:
(2) The marginal propensity to save (MPS)is:
(3) The marginal propensity to consume (MPC)is:
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