Plot the aggregate consumption function for country a

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From 2009 to 2014, Country A experienced large fluctuations in both aggregate consumer spending and disposable income, but wealth, the interest rate, and expected future disposable income did not change. The accompanying table shows the level of aggregate consumer spending and disposable income in millions of dollars for each of these years. Use this information to answer the following questions.

Year         Disposable income                  Consumer spending

2009                          $100                                                     $180

2010                          350                                                         380

2011                          300                                                         340

2012                          400                                                         420

2013                          375                                                         400

2014                          500                                                         500

a. Plot the aggregate consumption function (CF) for country A.

Reference no: EM132401215

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