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*4. Data on before-tax income, taxes paid and consumption spending (on domestic goods and services) for the Simpson family in various years are given below.
*4. Data on before-tax income, taxes paid and consumption spending (on domestic goods and services) for the Simpson family in various years are given below. El. b. BEFORE-TAX INCOME ($1) TAX PAID (S) CONSUMPTION SPENDING (S) Graph the Simpsons's consumption function and nd their household's marginal propensity to consume. How much would you expect the Simpsons to consume if their income was $32 000 and they paid taxes of $5000? Homer Simpson wins a lottery prize. As a result, the Simpson family increases its consumption by $1000 at each level of after-tax income. ('Income' does not include the prize money.) How does this change affect the graph of their consumption function? How does it affect their marginal propensity to consume
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