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You have the following information on personal consumption expenditures (C) and disposable income (Y d ): Year C Y d 1 300 400 2 500
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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