Suppose that disposable income, consumption, and saving in some country are $400 billion, $350 billion, and $50 billion, respectively. Next, assume that disposable income increases by $40 billion, consumption rises by $30 billion, and saving goes up by $10 billion. a. What is the economy's MPC? Instructions: Round your answers to 2 decimal places. MPC = What is its MPS? MPS b. What was the APC before the increase in disposable income? Instructions: Round your answer to 2 decimal piaces. APC before
Suppose that disposable income, consumption, and saving in some country are $400 billion, $350 billion, and $50 billion, respectively. Next, assume that disposable income increases by $40 billion, consumption rises by $30 billion, and saving goes up by $10 billion. a. What is the economy's MPC? Instructions: Round your answers to 2 decimal places. MPC = What is its MPS? MPS b. What was the APC before the increase in disposable income? Instructions: Round your answer to 2 decimal piaces. APC before
Chapter23: The Aggregate Expenditure Model
Section: Chapter Questions
Problem 1P
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![Suppose that disposable income, consumption, and saving in some country are $400 billion, $350 billion, and $50 billion, respectively.
Next, assume that disposable income increases by $40 bilion, consumption rises by $30 billion, and saving goes up by $10 billion.
a. What is the economy's MPC?
Instructions: Round your answers to 2 decimal places.
MPC=
What is its MPS?
MPS
b. What was the APC before the increase in disposable income?
Instructions: Round your answer to 2 decimal places.
APC before](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fac5f79fe-c8f4-471d-a0de-8c18133ddf1e%2Faa3bab12-0053-41ee-aede-777d917603ab%2F7gubjs1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that disposable income, consumption, and saving in some country are $400 billion, $350 billion, and $50 billion, respectively.
Next, assume that disposable income increases by $40 bilion, consumption rises by $30 billion, and saving goes up by $10 billion.
a. What is the economy's MPC?
Instructions: Round your answers to 2 decimal places.
MPC=
What is its MPS?
MPS
b. What was the APC before the increase in disposable income?
Instructions: Round your answer to 2 decimal places.
APC before
![What was the APC after the increase?
Instructions: Round your answer to 3 decimal places.
APC after
%3D](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fac5f79fe-c8f4-471d-a0de-8c18133ddf1e%2Faa3bab12-0053-41ee-aede-777d917603ab%2Fkwgmqgc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:What was the APC after the increase?
Instructions: Round your answer to 3 decimal places.
APC after
%3D
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