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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
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
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