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Econ 4th Edition by William McEachern
Edition 4ISBN: 978-1285423548Econ 4th Edition by William McEachern
Edition 4ISBN: 978-1285423548 Exercise 5
Explain what a consumption function illustrates and interpret its slope
(Consumption and Saving) Suppose that consumption equals $500 billion when disposable income is $0 and that each increase of $100 billion in disposable income causes consumption to increase by $70 billion. Draw a graph of the consumption function using this information. What is the slope of the consumption function?
(Consumption and Saving) Suppose that consumption equals $500 billion when disposable income is $0 and that each increase of $100 billion in disposable income causes consumption to increase by $70 billion. Draw a graph of the consumption function using this information. What is the slope of the consumption function?
Explanation
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Econ 4th Edition by William McEachern
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