Fill in the blanks using the number that corresponds to the correct word or phrase in the word bank below: 1. downward 2. Movement along 3. $700 4. upward 5. $100 6. 1 7. Marginal propensity to consume MPC 8. $800 9. Marginal propensity to save MP3 10. $200 11. equals 12. Grealer than 13. consumption 14. save 15. Oiher determinants 16. Consumption function 17. Disposable personal income 18. increases 19 zero The relationship between consumption and disposable personal income is called the . Plols on a graph of consumption and disposable personal income over time suggest that consumption as disposable personal income increases. More generally, the slope of a consumption function equals the change in consumption divided by the change in . The ratio of the change in consumption (AC) to the change in disposable personal income (A Yd) is the If a person with an MPC of 0.8 received an extra $1,000 of disposable personal income, that person's consumption would rise by If the equation for the consumption function is C = $300 billion + 0.8Yd at a level of disposable personal income of $500 billion consumption is equal to . The slope of the consumption function, is the same as the Disposable income-personal savings: . when a 45 degree line is added to a consumption curve, at every point on the 45-degree line, the value on the vertical axis that on the horizontal axis. At the point where, consumption equals disposable personal income, personal saving equals In gure 28.3 at a disposable personal income of $2,000 billion consumption is $1,900 billion and personal saving equals billion, the vertical distance between the 45-degree line and the consumption function. A negative value for saving means that consumption is disposable personal income. The ratio of the change in personal saving (AS) to the change in disposable personal income (A Yd) is the . MPS can be interpreted as the fraction of an extra $1 of disposable personal income that people . If a person with an MP5 of 0.2 received an extra $1,000 of disposable personal income, that person's saving would rise by . MPC+MPS is always equal to Changes in disposable personal income cause the consumption curve. The consumption curve shifts when of consumption change. An increase in the level of consumption at each level of disposable personal income shis the consumption function and a reduction in the level of consumption at each level of disposable personal income shi's the curve . An increase in wealth will shift the consumption curve and a decrease in wealth will shift the consumption curve The sharp reduction in consumer condence in 2008 and early in 2009 contributed to a shift in the consumption function and thus to the severity of the recession