This question relates to desired saving, and is based on the table in Question 3 . a.
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This question relates to desired saving, and is based on the table in Question 3 .
a. Compute desired saving at each level of disposable income. Plot the saving function on a scale diagram. What is its slope?
b. Show algebraically that the average propensity to save plus the average propensity to consume must equal 1 .
Data from questions 3 Consider the following table showing aggregate consumption expenditures and disposable income. All values are expressed in billions of constant dollars.
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