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SOLVED: In the linear consumption function, cons binc, the (estimated) marginal propensity to consume (MPC) out of income is simply the slope, while the average propensity to consume (APC) is cons inc, inc. Using observations for IQ0 families on annual income and consumption (both measured in dollars), the following equation is obtained:cous = 124.84 0.853inc.What is the predicted consumption when family income is 330,000?With income (inc) on the X-axis, draw a graph of the estimated MPC and A

SOLVED: In the linear consumption function, cons binc, the (estimated) marginal propensity to consume (MPC) out of income is simply the slope, while the average propensity to consume (APC) is cons inc, inc. Using observations for IQ0 families on annual income and consumption (both measured in dollars), the following equation is obtained:cous = 124.84 0.853inc.What is the predicted consumption when family income is 330,000?With income (inc) on the X-axis, draw a graph of the estimated MPC and A

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