On the graft below, draw the consumption function: C=$20+0.8 (Disposable Income).

International Economics
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Question No. 1
The consumption function may be represented in the following relationship:
C=a+b (Disposable Income)
Where C: consumption spending
a: autonomous consumption spending
b: MPC
On the graft below, draw the consumption function: C=$20+0.8 (Disposable Income).
Consumption is $billions per year.
Disposable income is $100 billion per year.
Answer the following questions:
At what level of income do households begin to save? Indicate the point on the graph with the letter A.
By how much does consumption increase when income rises $150 beyond point A? Indicate this new level of consumption with point B.
The Keynesian consumption function shows the level of consumer expenditure based on three factor including disposable income (Yd), autonomous consumption (a) and marginal propensity to consume (b) (Ball, 2017). the consumption function in this case is provided as C=$20+0.8. From the level of disposal income from the consumption function is 0.8. This higher level of disposal income (Yd) leading to higher rate of consumers spending. The autonomous consumption from the equation is valued at 20$. On the other hand, the slope provided as 0.8 represents change in y axis divide change in the x-axis (