Economists observed the only five residents of a very small economy and estimated each ones consumer spending
Question:
Economists observed the only five residents of a very small economy and estimated each one’s consumer spending at various levels of current disposable income. The accompanying table shows each resident’s consumer spending at three income levels.
a. What is each resident’s consumption function? What is the marginal propensity to consume for each resident?
b. What is the economy’s aggregate consumption function? What is the marginal propensity to consume for the economy?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: