Answer Happy

Use the table below to solve this problem. Level of Output and Income (GDP = DI) $480 520 560 600 640 680 720 760 800 Consumption $496 528 560 592 624 656 688 720 752 Saving $-16 -8 0 8 16 24 32 40 48 APC 1.0167 1.0000 0.9857 0.9733 0.9625 0.9529 0.9444 0.9368 0.9300 APS -0.0167 0.0000 0.0143 0.0267 0.0375 0.0471 0.0556 0.0632 0.0700 MPC 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 ooo MPS 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 Suppose the wealth effect is such that a $10 change in wealth produces a $1 change in consumption at each level of income.
Suppose the wealth effect is such that a $10 change in wealth produces a $1 change in consumption at each level of income. Instructions: Enter your answers as a whole number. a. If real estate prices tumble such that wealth declines by $320, what will be the new level of consumption at the $680 billion level of disposable income? $ 352 X b. What will be the new level of saving? 12 X