What is the economy mpc

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Suppose that disposable income, consumption, and saving in some country are $200 billion, $150 billion, and $50 billion, respectively. Next, assume that disposable income increases by $20 billion, consumption rises by $18 billion and saving goes up by $2 billion.

1. What is the economy's MPC?

2. What is its MPS?

3. What was the APC before and after the increase in disposable income?

Reference no: EM132813461

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