Draw consumption function

Assignment Help Macroeconomics

Reference no: EM1313484

Consumption Function

Consider the following data:

Year Real Disposable Income Real Consumption

0 20,000 14,000

1 30,000 19,000

2 40,000 24,000

For now, assume that no other variable (besides real disposable income) that could affect real Consumption has changed between Year 0, Year 1, and Year 2.

What is the marginal propensity to consume?

Reference no: EM1313484

Questions Cloud

Concept of double entry system and it application : Concept of Double entry system and it application - Describe how the double-entry system is applied in accounting for the following transaction

Concepts of phenotype-genotype-chromosomes : Chromosomes may be divided into two general categories. Those included in the determination of the sex are referred to as the "Sex Chromosomes".

What will be point also arc elasticity for the condition : If the market is made up of 100 individuals with demand curves identical to Mr. Smith's, Illustrate what will be the point also arc elasticity for the conditions specified in parts a also b

Problems on hypothesis testing : If true explain and if false give an example. a. The significance level of a statistical test is equal to the probability that the null hypothesis is true. b. If the significance level of a test is decreased, the power of the test would be expected t..

Draw consumption function : Given the data of real disposable income and real consumption, draw consumption function, determine the slope-What is the marginal propensity to consume?

Twotail test to claim average cottage cheese consumption : Which of following statements would be right concerning a twotail test at 0.05 level of significance? We can conclude that average cottage cheese consumption in America is at least 0.705 pound more or less than 2.75 pounds per person per year.

The coefficient of kinetic friction between box and incline : While John is travelling along an interstate highway, he notices a 139 mi marker as he passes through town. Later John passes a 116 mi marker. What is the distance between town and John's current location.

Accounting basics about closing process in accounting cycle : The question is on accounting basics about closing process in accounting cycle. Show which of the following accounts will be closed to Income Summary at year-end.

Computation of the present value of the contract : Computation of the present value of the contract and what was the present value of this contract in January when Schneider signed it

User Account

All Pages