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    CH 21 No.4-6

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    adeline ikofani
    The document discusses consumption and savings functions based on different levels of income. It shows that when consumption equals income at all levels, the consumption function will be a 45 degree line where MPC is 1 and MPS is 0. It also provides an example of estimating income, consumption, and savings categories from the previous year. Finally, it explains that if income increases more than consumption along the function, it implies the MPC is less than 1 and the MPS is greater than 0.

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    CH 21 No.4-6

    Uploaded by

    adeline ikofani
    79 views2 pages
    The document discusses consumption and savings functions based on different levels of income. It shows that when consumption equals income at all levels, the consumption function will be a 45 degree line where MPC is 1 and MPS is 0. It also provides an example of estimating income, consumption, and savings categories from the previous year. Finally, it explains that if income increases more than consumption along the function, it implies the MPC is less than 1 and the MPS is greater than 0.

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    CH 21 NO.4-6

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    The document discusses consumption and savings functions based on different levels of income. It shows that when consumption equals income at all levels, the consumption function will be a 45 degree line where MPC is 1 and MPS is 0. It also provides an example of estimating income, consumption, and savings categories from the previous year. Finally, it explains that if income increases more than consumption along the function, it implies the MPC is less than 1 and the MPS is greater than 0.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    79 views2 pages

    CH 21 No.4-6

    Uploaded by

    adeline ikofani
    The document discusses consumption and savings functions based on different levels of income. It shows that when consumption equals income at all levels, the consumption function will be a 45 degree line where MPC is 1 and MPS is 0. It also provides an example of estimating income, consumption, and savings categories from the previous year. Finally, it explains that if income increases more than consumption along the function, it implies the MPC is less than 1 and the MPS is greater than 0.

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    © All Rights Reserved
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    of 2

    QUESTIONS FOR DISCUSSION (CHAPTER 21) NO.

    4-6

    4. I consume all my income at every level of income. Draw my consumption and saving functions. What
    are my MPC and MPS?

    When consumption is expended on every income,it means that the valie of consumption will always ne
    equal to income so that Y=C and S=0.This also shows a break even income the curve of consumption and
    saving.

    Y Y=C

    45 C

    The curve shows that the slope of consumption (MPC) is 1 (Y=C),while the slope of saving (MPS) is 0
    (S=0)

    5. Estimate your income, consumption, and saving for last year. If you dissaved (consumed more than
    your income), how did you fi nance your dissaving? Estimate the composition of your consumption in
    terms of each of the major categories listed in Table 21-1.

    Category of consumption Value of consumption Percent of total


    Durable goods 3.500.000 25.9%
    Motor vehicles and parts 2.000.000
    Furniture and household equipment 500.000
    Other 1.000.000
    Nondurable goods 4.500.000 33.3%
    Food 3.000.000
    Clothing and shoes 1.000.000
    Energy goods 500.000
    Other -
    Services 5.500.000 40.7%
    Housing 1.000.000
    Household operation 500.000
    Transportation 1.000.000
    Medical care 1.000.000
    Recreation 2.000.000
    Other -
    Total personal consumption expenditures 13.500.000 100.0%
    6. “Along the consumption function, income changes more than consumption.” What does this imply for
    the MPC and MPS?

    Fungsi Konsumsi merupakan suatu kurva yang menggambarkan sifat hubungan di antara tingkat
    konsumsi rumah tangga dalam perekonomian dengan pendapatan nasional (atau pendapatan disposabel)
    perekonomian tersebut. Berdasarkan tabel I digambarkan pendapatan disposebel dalam kolom 1 selalu
    bertambah sebanyak Rp 100 ribu, sedangkan konsumsi bertambah sebanyak 75. Titik impas dari
    pendapatan yang dikonsumsi adalah ketika seluruh pendapatan yang diperoleh digunakan untuk
    konsumsi. Pada data diatas titik impas terjadi pada tingkat pendapatan 500. Dibawah titik 500, konsumsi
    lebih besar dari pada pendapatan dimana Y = 0, konsumsi sebesar 125. Angka 125 ini merupakan C0 atau
    Autonomous Consumption dimana seseorang atau secara agregat suatu perekonomian perlu mendapat
    subsidi atau hutang atau bantuan atau mengambil tabungan dimasa lalu sebesar 125 untuk
    mempertahankan hidup atau eksistensinya.

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