Answer and Explanation:
Given equation C = $600 billion +0.9Y
Where c = total consumer spending
$600 billion = consumer autonomous spendinf
0.9= marginal propensity to consume(mpc)
Y= income of consumers
A. Marginal propensity to consume(MPC)= 0.9 from equation given
B. Autonomous spending which is spending that is constant =$600 billion from equation given
C. Using equation of consumer spending above, C= $600 billion+0.9Y
With $4200 billion in income, consumers spending =$600 billion+0.9*$4200 billion
=$4380 billion
D. Savings= consumers income-consumers spending= $4200 billion-$4380 billion= -$180 billion
Therefore there was a deficit not saving
While not all land is suitable for agricultural, farmers can use irrigation and fertilizer to make land arable.
