Question: Need the below answer 5 In the linear consumption function cons = Bo + B,inc. the (estimated) marginal propensity to consume (MPC) out of income

Need the below answer

5 In the linear consumption function cons = Bo + B,inc. the (estimated) marginal propensity to consume (MPC) out of income is simply the slope, B1, while the average propensity to consume (APC) is cons/inc = Bolinc + 8,. Using observations for 100 families on annual income and consumption (both measured in dollars), the following equation is obtained: cons = -124.84 + 0.853 inc n = 100, R = 0.692. (i) Interpret the intercept in this equation, and comment on its sign and magnitude. (ii) (iii) What is the predicted consumption when family income is $30,000? With inc on the x-axis, draw a graph of the estimated MPC and APC

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