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Question - Suppose you have the following information about a fictitious economy. Assume there are no taxes in this economy.
Disposable Income and Consumption
Disposable Income (dollars)
Consumption (dollars)
$0
$12,000
10,000
19,200
19,500
26,400
29,000
33,600
38,500
40,800
48,000
Required -
a. What is the equilibrium level of consumption?
b. What is the MPC and MPS for this economy?
c. What is the value of autonomous consumption for this economy?
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