consumption spending? Before-tax income: 25,000 27,000 28,000 30,000
Taxes Paid: 3,000 3,500 3,700 4,000
Consumption Spending: 20,000 21,350 22,070 23,600
A. How much would you expect them to consume if their income was 32,000 and they paid taxes of 5,000?
B. He wins a lottery prize. As a result, the family increases its consumption by 1,000 at each leavel of after-tax income. ("income" does not include the prize money.)
C. How does this change affect of the graph of their consumption function?
D. How does it affect their marginal propensity to consume?
Taxes Paid: 3,000 3,500 3,700 4,000
Consumption Spending: 20,000 21,350 22,070 23,600
A. How much would you expect them to consume if their income was 32,000 and they paid taxes of 5,000?
B. He wins a lottery prize. As a result, the family increases its consumption by 1,000 at each leavel of after-tax income. ("income" does not include the prize money.)
C. How does this change affect of the graph of their consumption function?
D. How does it affect their marginal propensity to consume?