Question
a. Plot the graph of the consumption function for the available data. (2011-2020) b. calculate the marginal propensity to consume for the period taking each
a. Plot the graph of the consumption function for the available data. (2011-2020)
b. calculate the marginal propensity to consume for the period taking each couple of years (2011-2010; 2010-2009; and so on). PMC = C / YD
c. Calculate the marginal propensity to save for the period taking each couple of years (2011-2010; 2010-2009; and so on). PMA = A / YD
d. calculate the multiplier for each of the previous periods. The formula to calculate the multiplier is M = 1 / (1 - PMC).
Link for the chart:
https://docs.google.com/spreadsheets/d/1-Yj_vGrOA5tGeqzS7Fw3yF7N5vnh0zUZRSTKGqj9qS8/edit?usp=sharing
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