Suppose we have a Keynesian consumption function where autonomous consumption is $600 and the marginal propensity to consume is 0.60.
Econ 100B: Macroeconomics Problem Set #6 (25 points) Suppose we have a Keynesian consumption function where autonomous consumption is $600 and the marginal propensity to consume is 0.60. (5 points) Write an algebraic expression for the consumption equation. (5 points) Sketch a graph of this consumption curve that corresponds to the consumption equation […]