Question

3. Graphing the saving and consumption functions from the MPC AaAa 보 Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.8. That is, if disposable income increases by $1, consumption increases by Boc Suppose further that last year, disposable income in the economy was $400 bilion and consumption was $400 billion. Based on these data, use the blue line (cirde symbols) to plot this economy's consumption function on the following CONSUMPTION (Billions of dollars Consumption F 500 300 DISPOSABLE INCOME (Billions of dellars Help Clear Al The autonomous level of consumption in the economy equals graph reveals its slope and intercept.) billion. (Hint: Mousing over the line in the From the preceding data, you know that the level of saving in the economy last year was marginal propensity to save in this economy is and the Using these two facts, plot this economy's saving function on the following graph. SAVING Bitlions of dollarsl 700 600 500 400 300 200 100 Saving Function 100 D 100 200 3D 400 50D 600 700 BOD DISPOSABLE INCOME (Billions of dollars] Eme-tzu Suppose that this year, disposable income is projected to be $450 billion, Based on your analysis, you would expect consumption to be and saving to be

Would someone explain to me how to get the answers, please. I need the graphs plotted, the blue box answer, and the fill in the blanks answered. Below are the options.

Options for the first graph it says: From the preceding data, you know that the level of saving in the economy was ($140 billion, $20 billion, $0 billion, $100 billion) and the marginal propensity to save in the economy is (0.6, 0.8, 0.1, 0.2)

Options for the second graph are:

Suppose that this year, disposable income is projected to be $450 billion. Based on your analysis, you would expect consumption to be ($440 billion, $340 billion, $460 billion, $250 billion) and saving to be ($10 billion,$120 billion, $40 billion, $150 billion).

Thank you!