Posted by Amber on .
Real Disposable Consumption
Income (billions) Expenditures (billions) Saving (billions)
$100 $150 ______
200 200 ______
300 250 ______
400 300 ______

macroeconomics 
economyst,
Savings = income  expenditures. So, for the first example savings =50

macroeconomics 
Amber,
with the answers how would i do this?
a. Graph the consumption function with consumption spending on the
vertical axis and disposable income on the horizontal axis.
b. If the consumption function is a straight line, what is its slope?
c. Fill in the saving column at each level of income. If the saving
function is a straight line, what is its slope? 
macroeconomics 
economyst,
a) put income on the xaxis, consumption (and savings) on the yaxis. At x=100 and y=150 put a dot. At x=200 and y=200 put another dot. Repeat for 300 and 400. Connect the dots.
b) slope is rise over run. With each 100 increase in income (run), consumption goes up by 50 (rise). So, 50/100 = .5 = slope
c) repeat for savings 
macroeconomics 
Tariq,
a) put income on the xaxis, consumption (and savings) on the yaxis. At x=100 and y=150 put a dot. At x=200 and y=200 put another dot. Repeat for 300 and 400. Connect the dots.
b) slope is rise over run. With each 100 increase in income (run), consumption goes up by 50 (rise). So, 50/100 = .5 = slope
c) repeat for savings