Chapter 10 HW Assignment G Saved 2 Problem 10-2 (Algo) 6.87 points Suppose that

Question

Chapter 10 HW Assignment G Saved 2 Problem 10-2 (Algo) 6.87 points Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and $100 billion respectively. Next, assume that disposable income increases by $80 billion, consumption rises by $72 billion, and saving goes up by $8 billion. ncome necesises a S8 01:25:53 a. What is the economy's MPC? Instructions: Round your answers to 2 decimal places. eBook MPC Print References 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

Explanation / Answer

PART-A)

i) Solution: MPC = 0.9

Working: $72/$80 = 0.9.

ii) Solution: MPS = 0.1

Working: $8/$80 = 0.1

PART-B)

i) Solution: APC before: 0.875

Working: $700/$800 = 0.875

ii) Solution: APC after = 0.877

Working: ($700 + $72) / ($800 + $80)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.