a. Current Level of Saving, Billions:
Country A: 16
Country B: 10
Country C: -12
Country D: 0
Country E: -24
b. New Level of Saving, Billions:
Country A: 36
Country B: 30
Country C: 18
Country D: 20
Country E: -4
Ces
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
B
C
D
E
Real GDP,
Billions
$40
50
70
100
180
Consumption,
Billions
$24
40
82
100
204
MPC
0.75
0.80
0.90
0.95
0.75
Current Level
of Saving,
Billions
$
$
$
$
$
16
10
-12
0
-24
New Level of
Saving,
Billions
Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in
front of those numbers.
a. Enter the current level of saving in the appropriate column in the table.
b. Suppose that GDP increases by $20 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.
1 answer