Question: 2. Use the consumption function data below to answer the following questions: a. Calculate the saving schedule. b. Determine the marginal propensities to consume (MPC)

2. Use the consumption function data below to answer the following questions:

KEYNESIAN CONSUMPTION FUNCTION (BILLIONS OF DOLLARS PER YEAR) Real disposable income Consumption

a. Calculate the saving schedule.

b. Determine the marginal propensities to consume (MPC) and save (MPS).

c. Determine the break-even income.

d. What is the relationship between the MPC and the MPS?

KEYNESIAN CONSUMPTION FUNCTION (BILLIONS OF DOLLARS PER YEAR) Real disposable income Consumption Saving MPC MPS $100 $150 200 200 300 250 400 300 500 350

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