Print this document, and write your answers in the space provided: In the linear consumption function cons=^0+^1inc, where cons is consumption expenditures and inc is income. The (estimated) marginal propensity to consume (MPC) is simply the slope, ^1, while the average propensity to consume (APC) is inccons=inc^0+1^ Using observations for 100 families on annual income and consumption (both measured in dollars), the following equation is estimated: cons=124.84+0.853inc 1. Interpret the intercept in this equation, and comment on its sign and magnitude. 2. What is the predicted consumption when family income is $30,000 ? What is the APC at this income level? 3. With inc on the x-axis, draw a graph of the estimated MPC and APC