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E Homework: Homework 4 Question 5, 21.1 Question 16 (Static) HW Score: 88.33%, 17.67 of 20 points O Points: 0 of 1 Save A consumption
E Homework: Homework 4 Question 5, 21.1 Question 16 (Static) HW Score: 88.33%, 17.67 of 20 points O Points: 0 of 1 Save A consumption function is shown to the right. Consumption Function 1.) Use the line drawing tool to draw a new consumption line that shows the impact of a decrease in interest rates on the 800- consumption function of households. Label this line 'C,'. Make sure that the line starts at disposable income of 0. The 45 line consumption function should intersect the 45 degree line. 2.) Use the point drawing tool to plot the point that shows the break-even level of disposable income. Label this point 'E'. 600- Carefully follow the instructions above, and only draw the required objects Co Desired Consumption Expenditure 400- 200- 200 400 600 800 Disposable Income
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