Question: PLEASE ANSWER QUICKLY AND SHOW ALL WORK Disposable Income Total Consumption (Billions of dollars per year) (Billions of dollars per year) $0 $50 200 210

PLEASE ANSWER QUICKLY AND SHOW ALL WORK

Disposable Income

Total Consumption

(Billions of dollars per year)

(Billions of dollars per year)

$0

$50

200

210

Using the following information, please answer the following questions

1. What is the MPS?

2. Using information from question 1 above, suppose the autonomous consumption is $50 billion. Write down the consumption function.

3. Draw the consumption function. Show on the graph where savings and dissavings occur.

4. What is the amount of saving when income equals $900 billion?

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