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ECON 101 - The level of disposable income and consumption

Question # 00621634
Subject: Economics
Due on: 11/25/2017
Posted On: 11/25/2017 04:16 AM

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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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ECON 101 - The level of disposable income and consumption

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