Calculate the marginal propensity to consume. If wealth increases by $10 trillion, in which direction will the

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Calculate the marginal propensity to consume. If wealth increases by $10 trillion, in which direction will the consumption function change?


The table shows disposable income and saving in an economy. Use the table to answer Problem.

Disposable income Saving (trillions of dollars) -5 10 -3 20 -I 30 40 3 50 5

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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