You are given the following information concerning income, transitory income, and permanent consumption

(a) Calculate the amount of permanent income at each level of income.
(b) Calculate the long-run marginal propensity to consume, k.
(c) Assuming that the marginal propensity to consume out of transitory income equals 0, compute the short-run marginal propensities to consume at income levels of $6,000, $6,880, $8,020, $8,955, and $10,200.
(d) Explain how the short-run marginal propensities to consume differ from the long-run marginal propensity to consume.

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Permanent consumption 4,500 5,250 6,000 6,750 7,500 Income Transitory income 6,000 6,880 8,020 8,955 10,200 -120 20 -45 200