If an increase in a household's disposable income from $40,000 to $48,000 leads to an increase in consumption from $35,000 to $41,000,then the

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The slope of the consumption function is the change in consumption divided by the change in disposable income. In this case, the change in consumption is $41,000 - $35,000 = $6,000, and the change in disposable income is $48,000 - $40,000 = $8,000. Therefore, the slope of the consumption function is $6,000 / $8,000 = 0.75.

If an Increase in a Household's Disposable Income from $40,000