Question: Question]: Yd Consumption C-a+bYl 0 10 0 150 20 0 500 250 Required: Fill out the table above by using the information below Value of
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Question]: Yd Consumption C-a+bYl 0 10 0 150 20 0 500 250 Required: Fill out the table above by using the information below Value of marginal propensity to consume is .25 Autonomous consumer expenditure is 100. How much would be the change in I if there is a $1 change in output. (multiplier effect) Multiplier effect: Multiplier = 1/1-MPC= 1/1-0.25=1/0.75=1.33 Investment Multiplier = Change in Income / Change in Investment= 1.33 Change in Income = $1 1.33 =$1/ Change in Investment Change in Investment= 1/1.33=0.75 Change in I=0.758 due to 1$ change in output. Questions: Points on the Disposable Change in Change in Consumer graph Income Disposable Consumer Expenditure Income Expenditure A B D >Required: By using the information in question 2 fill out the table above. After filling out the table, graph the consumption function curve
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