Business, 28.02.2020 20:24 dlr1628

Use the table below to solve this problem. Suppose the wealth effect is such that a $10 change in wealth produces a $3 change in consumption at each level of income. Assume real estate prices tumble such that wealth declines by $320.level of Output Consumption APS -0.0167 0.0000 0.0143 0.0267 0.0375 0.0471 0.0556 0.0632 0.0700 Saving -32 -16 and Income 480 520 560 600 640 680 720 760 800 512 536 560 584 608 632 656 680 704 16 32 48 64 80 96 APC 1.0167 1.0000 0.9857 0.9733 0.9625 0.9529 0.9444 0.9368 0.9300 MPC 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 MPS 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2Instructions: Enter your answers as whole numbers.
a. What will be the new level of consumption at the $680 billion level of disposable income? $.
b. What will be the new level of saving? $

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Use the table below to solve this problem. Suppose the wealth effect is such that a $10 change in we...

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