Macroeconomics 19th Edition by Campbell McConnell , Stanley Brue,Sean Flynn

تمرين 5

Use your completed table for probleM₁ to solve this problem. Suppose the wealth effect is such that $10 changes in wealth produce $1 changes in consumption at each level of income. If real estate prices tumble such that wealth declines by $80, what will be the new level of consumption at the $340 billion level of disposable income? The new level of saving?