(Consumption) Use the following data to answer the questions below:Consumption Real Disposable Income(billions)Expenditures(billions)Saving(billions) $100 $150 $ $200 $200 $300 $250 $400 $300 Graph the consumption function, with consumption spending on the vertical axis and disposable income on the horizontal axis.If the consumption function is a straight line, what is its slope?Fill in the saving column at each level of income. If the saving function is a straight line, what is its slope?

1. The table is completed as follows.

Answered: (Consumption) Use the following data to…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 1QR

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(Consumption) Use the following data to answer the questions below:

Consumption Real Disposable Income

(billions)

Expenditures

(billions)

Saving

(billions)

$100

$150

$200

$300

$250

$400

$300

Graph the consumption function, with consumption spending on the vertical axis and disposable income on the horizontal axis.
If the consumption function is a straight line, what is its slope?
Fill in the saving column at each level of income. If the saving function is a straight line, what is its slope?

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