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Marginal propensity to consume

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Real GDP, consumption, and the marginal propensity to consume (MPC) for five hypothetical countries are shown in the following table. Use the table to answer the questions below.

Country A. Real GDP billions: $60, Consumption billions: $50, MPC: 0.80

Country B. Real GDP billions: $70, Consumption billions: $78, MPC: 0.90

Country C. Real GDP billions: $90, Consumption billions: $90, MPC: 0.95

Country D. Real GDP billions: $140, Consumption billions: $116, MPC: 0.75

Country E. Real GDP billions: $240, Consumption billions: $220, MPC: 0.95

1. Enter the current level of saving in the appropriate column in the table.

2. Now suppose that GDP increases by $60 billion in each of the five countries. What will be the new level of saving in each country? Enter your answers in the appropriate column in the table.

Reference no: EM133277682

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