Question: PLEASE SOLVE THIS ONE FAST.THANKS Question 2: MPC & Multiplier effects, Unemployment, and Inflation - 25 marks in total Marginal Propensity to Consume (MPC) and

PLEASE SOLVE THIS ONE FAST.THANKS

Question 2: MPC & Multiplier effects, Unemployment, and Inflation - 25 marks in total Marginal Propensity to Consume (MPC) and Multiplier Effects (a) The table below provides information about the economy of a country. (9 marks) Disposable Consumption Saving income expenditure (billions of dollars per year) 425 460 550 560 -10 675 660 You are muted. Press Alt+A to unmute your microphone, or 800 760 press and hold the SPACE key to temporarily unmute. 925 860 65 (i) What is marginal propensity to consume (MPC) and calculate the MPC. Show your calculation and interpret what the MPC you calculated mean. (4 marks) (ii) Assuming there is no change in net taxes and imports, calculate the Keynesian expenditure multiplier using the information you obtained in (1). Then calculate the change in real GDP using the multiplier you calculated when government increases its spending on rail and road reconstruction by $30 billion

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