An Airline spends the following amounts: Employee Salaries 500,000 New Plane 1,500,000 New Engine to fix an existing plane 150,000 Paper for consumer tickets 20,000 Fuel for fleet of planes 225,000 for the following 2 questions write the answer in whole numbers a. How much of the airline spending is considered gross investment? $ b, How much is net investment? $

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A: MPC=1/MPS MPS=15-12=3 =1/3=0.3 Therefore MPC=0.3.

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