Shift the current consumption schedule

Reference no: EM133339841

Question 1).Suppose that the linear equation for consumption in a hypothetical economy is C = 50 + 0.9 Y. Also suppose that income (Y) is $400. Determine the following: (a) MPC; (b) MPS; (c) level of consumption; (d) APC; (e) APS.

Question 2) List and explain four factors that could shift the current consumption schedule.

Question 3) State and elaborate on the factors that explain why investment spending tends to be unstable.

Reference no: EM133339841

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