Disposable income was originally $200 billion with consumption of $150 billion and savings of $50 billion. When disposable income rose by $20 billion to $220 billion, consumption increased by $18 billion to $168 billion and savings rose by $2 billion to $52 billion. The economy's MPC was 0.9 and MPS was 0.1 before and after the increase in disposable income.

1. 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 economys
MPC? Its MPS? What was the APC before the increase in disposable income? After the
increase? Explain