Consider a country with the national income of $300 billion, the amount of taxes paid by households of $130 billion, and household consumption of $180 billion. Suppose that the marginal propensity to consume (MPC) is 0.7.

On the following graph, use the blue line (circle symbol) to plot the economy's consumption function.

Hint: You should plot the first point where household consumption equals $180 billion. Then, plot the second point when real disposable income rises by $100 billion.

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