Sunday

April 20, 2014

April 20, 2014

Posted by **ben** on Friday, February 18, 2011 at 2:34am.

Where C is consumption, autonomous spending is 200, the MPC is .75, and DPI is disposable personal income.

Using the Graph below, graph the Consumption Function.

C

100

0 = Income

On the Graph, label the point where Savings = 0, as well as the areas of saving and dissaving.

Now, derive the point where Savings = 0 using the formulas. What is consumption when savings is zero?

What happens if autonomous spending increases to 300, so C= 300 + .75(DPI)? Show on the graph, and solve for the savings = 0 income below.

7. Consider the following Data:

MPS = .2

Autonomous spending is 100

What is the consumption function?

**Related Questions**

Economics - Problem #2: A Consumption Function: C = Co + MPC(Yd). Suppose that ...

Macro - Real Disposable (Billions) Consumption Expenditures (Billions) Savings...

Macro Consumption Question - (Simple Spending Multiplier) For each of the ...

Economics - consumption function, C=5+0.75*(Y-T). Y is,national income and T is ...

Macroeconomics - Suppose the marginal propensity to consume is 0.75. What does ...

Macro Help - Calculating Marginal Propensity to Save and Marginal Propensity to ...

Math - Suppose C(x) measures an economy's personal consumption expenditure and ...

math - Suppose C(x) measures an economy's personal consumption expenditure and x...

statistics - Hi all i have this assignment,please help me :D . . . . . 1.The ...

economics - Suppose that the consumption function is C=100+.8(y-t). Initially ...