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Data on before-tax income, taxes paid, and consumption spending for the Simpson family in various years are given below: Before-tax Taxes Consumption income($) paid($) spending($)
Data on before-tax income, taxes paid, and consumption spending for the Simpson family in various years are given below:
Before-tax | Taxes | Consumption |
income($) | paid($) | spending($) |
25000 | 3000 | 20000 |
27000 | 3500 | 21350 |
28000 | 3700 | 22070 |
30000 | 4000 | 23600 |
- Graph the Simpsons' consumption function and find their household's marginal propensity to consume.
- What is the autonomous consumption amount?
- How much would you expect the Simpsons to consume if their income was $32,000 and they paid taxes of $5,000?
Please help me answer these questions above! Thank you so much!
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