Suppose that disposable income, consumptio, and saving in some country are $ 200 billion, $ 150 billion, and $ 50 billion respectively. Next, assume that disposobal income increase by $ 20 billion, consumption rises by $ 18 billion, and saving goes up by $ 2 billion.  a) What is the economy's MPC? What is its MPS?  Instructions: Round your answers to 1 decimal place.  b) What was the APC before the increase in disposable income?  Instructions: Round your answer to 2 decimal places.  What was the APC after the increase. ( round your answer to 3 decimal places).

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter9: Aggregate Demand
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Suppose that disposable income, consumptio, and saving in some country are $ 200 billion, $ 150 billion, and $ 50 billion respectively. Next, assume that disposobal income increase by $ 20 billion, consumption rises by $ 18 billion, and saving goes up by $ 2 billion. 

a) What is the economy's MPC? What is its MPS? 

Instructions: Round your answers to 1 decimal place. 

b) What was the APC before the increase in disposable income? 

Instructions: Round your answer to 2 decimal places. 

What was the APC after the increase. ( round your answer to 3 decimal places). 

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