Question: Consider the numbers in Table 1 giving consumption as a percentage of income in prosperous years (1929, 1955, 1973, 1979, 1989, 2000, 2006) compared with

Consider the numbers in Table 1 giving consumption as a percentage of income in prosperous years (1929, 1955, 1973, 1979, 1989, 2000, 2006) compared with recession years (1933, 1958, 1975. 1982. 1991. 2001. 2008) Notice that in each case consumption is higher as a percentage of income in the recession years. Is this outcome what you would predict on the basis of Keynes's consumption function given by equation (9)? Explain.

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