Suppose disposable income increases by $ 2,000 . As a result, consumption increases by $ 1,500 . Answer the questions based on this information. Where appropriate, enter your answer as a decimal rather than as a percentage.

a. The increase in savings resulting directly from this change in income is:
b. The marginal propensity to save (MPS) is:

Coop inc. owns 40% of chicken inc., both coop and chicken are corporations. chicken pays coop a dividend of $10,000 in the current year. chicken also reports financial accounting earnings of $20,000 for that year. assume coop follows the general rule of accounting for investment in chicken. what is the amount and nature of the book-tax difference to coop associated with the dividend distribution (ignoring the dividends received deduction)?