Question: in the linear consumption function the estimated marginal propensity to consume MPC out of income is simply the slop, B 1 , while the average

in the linear consumption function the estimated marginal propensity to consume MPC out of income is simply the slop, B1, while the average propensity to consume APC is cons/inc = B0/inc +B1. using observations for 100 families on annual income and consumption the following equation is obtained

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