Question: Consider the following table showing aggregate consumption expenditures and disposable income. All values are expressed in billions of constant dollars. table [ [
Consider the following table showing aggregate consumption expenditures and disposable income. All values are expressed in billions of constant dollars.
tabletableDisposableIncomeYDtableDesiredConsumptionCtableDesiredSavingsSAPC,MPCAPS,MPS
a Compute the average propensity to consume for each level of income and fill in the table.
b Compute the marginal propensity to consume for each successive change in income.
c Determine the equation for this consumption function.
d Compute the desired saving at each level of disposable income.
e Compute the average propensity to save and marginal propensity to save.
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