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Suppose that John's MPC is constant at 4/5. If he had no income at all, he would have to borrow $2,000 to meet all his
Suppose that John's MPC is constant at 4/5. If he had no income at all, he would have to borrow $2,000 to meet all his expenses. Graph John's consumption function and write it out algebraically. Using the formula for John's consumption function, find his break-even point.
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