1. Why is anticipation a good thing during inflation?
2. How does a change in disposable income affect the consumption schedule?
3. If MPS is .2 and the change in disposable income is $400. What is the change in savings?
4. Draw the consumption graph.
5. What can cause the consumption and savings schedules to shift?
6. What is the break-even point?
7. How are the real interest rate and the level of investment related?

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1 Anticipation during inflation can be beneficial because it allows individuals and businesses to make informed decisions and take appropriate actions to mitigate the effects of rising prices When peo... View the full answer