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Calculate the level of saving in year 2

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Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.84. Suppose that in Year 1, disposable income in the economy was $412 billion and consumption was $368 billion. Suppose further that in Year 2, disposable income is $540 billion. Calculate the level of saving in Year 2. Show your work. (Show your work to earn credits. No Work, No Credit.)

Reference no: EM132506891

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