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 $60 billion, and saving goes up by $20 billion.

Instructions:In part a, round your answers to 2 decimal places. In part b, round your answers to 3 decimal places.

a. What is the economy's MPC?

MPC =

What is its MPS?

MPS =

b. What was the APC before the increase in disposable income?

APC before =

What was the APC after the increase?

APC after =