Question: 1. Using these two equations, what will be the level of consumption when national income is zero? 2. What will happen to the shape of

1. Using these two equations, what will be the level of consumption when national income is zero?

2. What will happen to the shape of the consumption function in diagram (b) in each of the following cases?

(a) When the value of the a term increases.

(b) When the value of the b term decreases.

(c) When the value of the c term decreases.

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