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.

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