Question: 2. Classify the endogenous and exogenous variables in the consumption function. Is the disposable income exogenous in the Keynesian model? Explain what the marginal propensity

Is the disposable income exogenous in the Keynesian model? Explain what the

2. Classify the endogenous and exogenous variables in the consumption function. Is the disposable income exogenous in the Keynesian model? Explain what the marginal propensity to consume and the marginal propensity to save is. Which equation relates both parameters? Suppose that disposal income is zero. How much is private saving? Define autonomous expendituresfspending and interpret it graphically. Define the multiplier of the autonomous expenditures. Explain the condition needed for having equilibrium in the market for goods and services. 9. Why is the expenditures demand line upwardsloping? 10. What variables determine the intercept and the slope of the expenditure demand function? 11. When real GDP declines during a recession, what typically happens to consumption, investment and the unemployment rate? PM\"? POT-'9'.\

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