The table below shows data for three fictitious countries. a. Compute the current MPC for each country. Instructions: Round your answers to two decimal places. Income and Consumption Data, Three Countries Change in Income (dollars) $8,900 30,400 5,120 Change in Consumption (dollars) $4,461 18,750 3,840 Country Adrup Bedrup Cedrup b. Which country has the highest marginal propensity to save (MPS)? (Click to select) c. If income in Bedrup increases by $240 and income in Cedrup increases by $480, which of the following statements is correct? MPC O Neither Bedrup nor Cedrup will save any dollars. O Bedrup will save more dollars. O Cedrup will save more dollars. O Dollar savings will be the same for both Bedrup and Cedrup.

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Chapter1: Making Economics Decisions
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The table below shows data for three fictitious countries.
a. Compute the current MPC for each country.
Instructions: Round your answers to two decimal places.
Income and Consumption Data, Three Countries
Change in
Income
(dollars)
$8,900
30,400
5,120
Change in
Consumption
(dollars)
$4,461
18,750
3,840
Country
Adrup
Bedrup
Cedrup
b. Which country has the highest marginal propensity to save (MPS)?
(Click to select)
c. If income in Bedrup increases by $240 and income in Cedrup increases by $480, which of the following statements is correct?
MPC
O Neither Bedrup nor Cedrup will save any dollars.
O Bedrup will save more dollars.
Cedrup will save more dollars.
O Dollar savings will be the same for both Bedrup and Cedrup.
Transcribed Image Text:The table below shows data for three fictitious countries. a. Compute the current MPC for each country. Instructions: Round your answers to two decimal places. Income and Consumption Data, Three Countries Change in Income (dollars) $8,900 30,400 5,120 Change in Consumption (dollars) $4,461 18,750 3,840 Country Adrup Bedrup Cedrup b. Which country has the highest marginal propensity to save (MPS)? (Click to select) c. If income in Bedrup increases by $240 and income in Cedrup increases by $480, which of the following statements is correct? MPC O Neither Bedrup nor Cedrup will save any dollars. O Bedrup will save more dollars. Cedrup will save more dollars. O Dollar savings will be the same for both Bedrup and Cedrup.
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