<transcript><audio_1>consumption plus the propensity to save small s and disposable income now when we put in the values we know that the margin propensity to consume small C is</transcript><transcript><audio_2>.9 and then the question is if there's an increase in disposable income of 100 what happens to your consumption spending in this case it will increase by 90 that is 0.9 * 100 if you put the</transcript><transcript><audio_3>values in your savings function your savings function the margin propensity to save will be .1 that is 1 minus the marginal propensity to consume it's .1 if there's an increase in disposable</transcript> consumption plus the propensity to save small s and disposable income now when we put in the values we know that the margin propensity to consume small C is .9 and then the question is if there's an increase in disposable income of 100 what happens to your consumption spending in this case it will increase by 90 that is 0.9 * 100 if you put the values in your savings function your savings function the margin propensity to save will be .1 that is 1 minus the marginal propensity to consume it's .1 if there's an increase in disposable
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