Question: If the Marginal Propensity to Save (MPS) increases how will that impact the slope and the level of the consumption schedule? In a few sentences,

  1. If the Marginal Propensity to Save (MPS) increases how will that impact the slope and the level of the consumption schedule?
  2. In a few sentences, explain one way the official unemployment rate understates the actual level of unemployment?
  3. In a few sentences, explain why an initial change in consumption of $1 billion will lead to a larger finalchange in GDP.

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