Real Disposable (Billions) Consumption Expenditures (Billions) Savings (Billions)
Income
$100 $150 ____________
200 200 ____________
300 250 ____________
400 300 ____________
a. Graph the consumption function with consumption spending on the vertical axis and disposable
income on the horizontal axis.
b. If the consumption function is a straight line, what is its slope?
c. Fill in the saving column at each level of income. If the saving function is a straight line, what is its
slope?
Really having a hard time with this question.