Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and $100 billion, respectively. Next, assume that disposable income increases

image text in transcribed
image text in transcribed
Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and $100 billion, respectively. Next, assume that disposable income increases by $80 billion, consumption rises by $64 billion, and saving goes up by $16 billion. What is the economy's MPC? What is its MP5? Instructions: Round your answers to one decimal place. MPC = 0.8 MPS = 0.2 What was the APC before the increase in disposable income? After the increase? Instructions: Round your answer to two decimal places. APC before the increase in disposable income = 0.88 Instructions: Round your answer to two decimal places. APC after the increase in disposable income = 0.37

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations Of Global Financial Markets And Institutions

Authors: Frank J. Fabozzi, Frank J. Jones, Francesco A. Fabozzi, Steven V. Mann

5th Edition

0262039540, 978-0262039543

More Books

Students also viewed these Economics questions

Question

Week 4 Discussion Board 4 . 1 : Leadership Power

Answered: 1 week ago