1. Compare the following concepts as they relate to Macroeconomic consumption and
savings:
I. Autonomous Consumption and Induced Consumption
II. MPC and MPS
III. Linear MPC and Non-Linear MPC
IV. Saving and Dis-saving
V. Permanent Income and Transitory Income
VI. Liquidity constraints and Buffer Stocks

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1 i Autonomous consumption refers to the consumption expenditure that clients should make even when the disposable income is zero Such consumptions ar... View the full answer