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1. What must the value of the average propensity to save (APS) be if the average propensity to consume (APC) is greater than 1? Why?

1. What must the value of the average propensity to save (APS) be if the average propensity to consume (APC) is greater than 1? Why?

2. How can autonomous consumption be greater than zero when income is zero?

3. How does an improvement in consumer confidence affect the consumption function and the aggregate demand curve?

4. What is investment spending, and what are the factors that impact investment demand? Explain.

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