Question

Refer to the "In The News" below:

In The News: Disposable Income and Outlays: May 2014

Disposable income increased $55 billion, or 0.42 percent, in May, according to the Bureau of Economic Analysis. Personal spending increased $40 billion.

(in $ billions)	April 2014	May 2014
Disposable Income    . . . . . . . . . . . . . . . . .	12,915	12,970
Personal outlays . . . . . . . . . . . . . . . . . . . .	12,242	12,282
Personal savings . . . . . . . . . . . . . . . . . . . .	673	688

Source: U.S. Bureau of Economic Analysis.

Instructions: Enter your responses rounded to the nearest whole number.

By how much did:

(a) Disposable income increase? $ billion

(b) Consumption increase? $ billion

(c) Savings increase? $ billion

Instructions: Enter your responses to the following questions rounded to the nearest two decimal places.

(d) What was the MPC?

(e) What was the MPS?

(f) What was the APC for May?

Answer 1

in $ billions)	Apr-14	May-14	Increase or decrease(-)	MPC=Change in C/Change in Y	MPS = 1-MPC	APC for May = C/Y
Disposable Income or (Y)	12,915	12,970	55
Personal outlays (C)	12,242	12,282	40	0.73	0.27	0.95
Personal savings (S)	673	688	15