Homework Aggregate Expenditures Consumption Function 400 CONSUMPTION (Billions of dollars) 300 200 100 100 200 309 450 500 600 760 DISPOSABLE INCOME (Billions of dollars) From the preceding data, you know that the level of saving in the economy last year was s billion and the marginal propensity to save In this economy Is Suppose that this year, disposable income is projected to be $650 billion, Based on your analysis, you would expect consumption to be 1 billion and saving to be $ billion. Grade It Now Save & Continue Continue without savingHomework Aggregate Expenditures 3. Graphing the consumption function from the MPC Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.50. That is, if disposable income increases by $1, consumption Increases by 504. Suppose further that last year disposable income in the economy was $450 billion and consumption was $400 billion. On the following graph, use the blue line (circle symbol) to plot this economy's consumption function based on these data. Consumption Function 590 400 300 CONSUMPTION (Billions of dollars) 200 100 200 300 500 TOO