The reason for the short run consumption function a flatter slope than long run consumption function. Illustration with a diagram.

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Chapter 9, Problem 16E

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The reason for the short run consumption function a flatter slope than long run consumption function. Illustration with a diagram.

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In the long run, what happens to consumption in the economy when people are saving less? a) remains the same b) cannot tell from the graph c) decreases d) increases

Clearly explain the characteristics of the consumption function.

Draw the consumption function as the relation of the consumer's income and expenditure. What does the slope of the consumption function depend on? Is the consumer's income the only factor determining the level of his consumption spending?

Answer 2

Question

Chapter 9, Problem 16E

To determine

To write:

The reason for the short run consumption function a flatter slope than long run consumption function. Illustration with a diagram.

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Answer 3

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Chapter 9, Problem 16E

To determine

To write:

The reason for the short run consumption function a flatter slope than long run consumption function. Illustration with a diagram.

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Answer 4

Question

Chapter 9, Problem 16E

To determine

To write:

The reason for the short run consumption function a flatter slope than long run consumption function. Illustration with a diagram.

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Answer 5

Chapter 9, Problem 16E

To determine

To write:

The reason for the short run consumption function a flatter slope than long run consumption function. Illustration with a diagram.

Answer 6

Chapter 9, Problem 16E

To determine

To write:

The reason for the short run consumption function a flatter slope than long run consumption function. Illustration with a diagram.

Answer 7

Chapter 9, Problem 16E

To determine

To write:

The reason for the short run consumption function a flatter slope than long run consumption function. Illustration with a diagram.

Answer 8

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Answer 9

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Answer 11

Ch. 9 - Prob. 1E Ch. 9 - Prob. 2E Ch. 9 - Prob. 3E Ch. 9 - Prob. 4E Ch. 9 - Prob. 5E Ch. 9 - Prob. 6E Ch. 9 - Prob. 7E Ch. 9 - Prob. 8E Ch. 9 - Prob. 9E Ch. 9 - Prob. 10E

The reason for the short run consumption function a flatter slope than long run consumption function. Illustration with a diagram.

Solution Summary: The author illustrates the short-run consumption function's lower marginal propensity to consume compared to the long run.

To write:

The reason for the short run consumption function a flatter slope than long run consumption function. Illustration with a diagram.

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Chapter 9 Solutions

The reason for the short run consumption function a flatter slope than long run consumption function. Illustration with a diagram.

Solution Summary: The author illustrates the short-run consumption function's lower marginal propensity to consume compared to the long run.

To write: The reason for the short run consumption function a flatter slope than long run consumption function. Illustration with a diagram.

Want to see the full answer?

Chapter 9 Solutions

To write:

The reason for the short run consumption function a flatter slope than long run consumption function. Illustration with a diagram.