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Table 1: in billion of US dollars Income (Y) Consumption (C) 0 1,000 1,000 1,500 2,000 2,000 3,000 2,500 4,000 3,000 5,000 3,500 6,000 4,000

Table 1: in billion of US dollars

Income (Y) Consumption (C)

0 1,000

1,000 1,500

2,000 2,000

3,000 2,500

4,000 3,000

5,000 3,500

6,000 4,000

Assume that investment (I) is 500 bil, government purchases (g) are 300 bil,and net exports(x) are 200 bil.

  1. What is the MPC?
  2. What is the GDP multiplier?
  3. Whats the spending balance?
  4. Calculate the national saving.

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