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You have the following information on personal consumption expenditures (C) and disposable income (Yd): Year C Yd 1 300 400 2 500 700 a. Compute

You have the following information on personal consumption expenditures (C) and disposable income (Yd):

Year C Yd

1 300 400

2 500 700

a. Compute the marginal propensity to consume.

b. Compute the amount of savings for years 1 and 2.

c. Compute the marginal propensity to save.

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