Question: Use the consumption function data of a simply economy below to answer the following questions: Real Disposable Income Consumption Saving MPC MPS (in trillion $)

 Use the consumption function data of a simply economy below to

Use the consumption function data of a simply economy below to answer the following questions: Real Disposable Income Consumption Saving MPC MPS (in trillion $) 1.00 1.75 2 2.50 t w 3.25 4.00 4.75 5.50 6.25 1IIIIIII 7.00 IIIIIIII a. Calculate the saving schedule b. Graph the consumption function. Note : the equation for aggregate expenditure AE / Consumption function as in the chapter is a linear equation C = a + by c. Determine the marginal propensities to consume (MPC) and save (MPS) d. Determine the break-even/equilibrium level of real disposable income. e. What is the value of saving at the equilibrium level. f. What is the relationship between the MPC and the MPS

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