Exhibit 23-4 
-Plot the consumption function based on the data in Exhibit 23-4. What is the marginal propensity to consume? If the marginal propensity to consume changes to 0.85, show what happens to the consumption function.
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Q86: When examining consumption behavior at the household
Q87: Answer the questions below: Q88: The size of the MPC determines how Q89: The slope of the 45-degree line Q90: Interest rates do not affect consumption. Q92: If firms decide to decrease their purchases Q93: Define the marginal propensity to consume. Graphically, Q94: The consumption relationship in this chapter assumes Q95: Which of the following statements is true? Q96: If foreigners decide to increase their purchases
A)equals zero.
B)equals
A)A
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