Suppose that disposable income, consumption, and saving in some country are $200 billion, $150 billion, and $50 billion, respectively. Next, assume that disposable income increases by $20 billion, consumption rises by $18 billion, and saving goes up by $2 billion. What is the economy's MPC?Its MPS? What was the APC before the increase in disposable income? After the increase?

Answer and Explanation:

The computation is shown below:

Marginal Propensity to Consume (MPC) = change in consumption  change in disposable income

= $18 billion ÷  $20 billion

= 0.9

Marginal Propensity to Save (MPS) = change in saving ÷ change in disposable income

= $2 billion ÷ $20 billion

= 0.10

b) APC before the increase in disposable income

The average propensity to consume (APC) = Consumption (C) ÷ Disposable income (Y)

= $150 billion ÷ $200 billion

= 0.75

For After the increase in the disposable income, first we have to determine the new disposable income and the  new consumption which is

New disposable income is

= $200 billion + $20 billion

= $220 billion

And,

New consumption is  

= $150 billion + $18 billion

= $168 billion

Now

APC = new consumption ÷new disposable income

= $168 billion ÷ $220 billion

= 0.76

We simply applied the above formulas

1. Plantation workers raise coffee in many parts of Hawaii.

2. The antique vase was broken by Mr. Ross as he walked through the store.

Explanation:

Active voice is when the subject is doing to action of the verb, and passive is when the action of the verb is done to the subject.