1. The study tip on page 538 suggests that you construct a consumption function based on your own propensity to consume. This process can be automated by using the tools available at http://nova.umuc.edu/~black

/consf1000.html. Assume your level of consumer expenditure as $2,000 (input as 20) and that your marginal propensity to spend is 0.8. Review the resulting graphs. At an income level of $5,000 (50 on the graph), what is your expenditure?