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2. Assume that the level of autonomous consumption in Mudville is $1000. If the marginal propensity...

2. Assume that the level of autonomous consumption in Mudville is $1000. If the marginal propensity to consume is 0.8, what is the consumption function? Saving function? Give an equation for each and show each graphically. At what level of income is saving = 0? Show on your graphs.

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Rahul Sunny answered 1 year ago
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