(Answered) Suppose that the level of disposable income and consumption

Management Studies

Suppose that the level of disposable income and consumption in a country called Y are $400 billion and $240 billion, respectively. Next, assume that when disposable income increases by $30 billion, saving goes up by $20 billion.

a. Please calculate the APS before the increase in disposable income.

b. Please calculate the economy's MPC

c. Calculate the APC after the increase in disposable income.

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Business Management, Management Studies

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