Suppose that disposable income consumption and saving in, Ask an Expert

Economics

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 $60 billion, and saving goes up by $20 billion. What is the economy's MPC? Its MPS?
What was the APC before the increase in disposable income? After the increase?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9685138

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