Question: Use the consumption function data below to answer the following questions: KEYNESIAN CONSUMPTION FUNCTION (BILLIONS OF DOLLARS PER YEAR) a. Calculate the saving schedule. b.

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

KEYNESIAN CONSUMPTION FUNCTION

(BILLIONS OF DOLLARS PER YEAR)

Real disposable income Consumption Saving MPC MPS $100 $150 200 200 300

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?

Real disposable income Consumption Saving MPC MPS $100 $150 200 200 300 250 400 300 500 350

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