Clutch Prep is now a part of Pearson
Ch. 15 - Income and ConsumptionWorksheetSee all chapters
All Chapters
Ch. 1 - Introduction to Macroeconomics
Ch. 2 - Introductory Economic Models
Ch. 3 - Supply and Demand
Ch. 4 - Elasticity
Ch. 5 - Consumer and Producer Surplus; Price Ceilings and Price Floors
Ch. 6 - Introduction to Taxes
Ch. 7 - Externalities
Ch. 8 - The Types of Goods
Ch. 9 - International Trade
Ch. 10 - Introducing Economic Concepts
Ch. 11 - Gross Domestic Product (GDP) and Consumer Price Index (CPI)
Ch. 12 - Unemployment and Inflation
Ch. 13 - Productivity and Economic Growth
Ch. 14 - The Financial System
Ch. 15 - Income and Consumption
Ch. 16 - Deriving the Aggregate Expenditures Model
Ch. 17 - Aggregate Demand and Aggregate Supply Analysis
Ch. 18 - The Monetary System
Ch. 19 - Monetary Policy
Ch. 20 - Fiscal Policy
Ch. 21 - Revisiting Inflation, Unemployment, and Policy
Ch. 22 - Balance of Payments
Ch. 23 - Exchange Rates
Ch. 24 - Macroeconomic Schools of Thought
Ch. 25 - Dynamic AD/AS Model
Ch. 26 - Special Topics
Sections
The Consumption Function
The Saving Function
Determinants of Consumption and Saving
Average Propensity to Consume and Save
Multiplier Effect of Investment Spending
Learn
Next SectionThe Saving Function

Concept #1: Consumption Function (Consumption Schedule)

Concept #2: Marginal Propensity to Consume and Save

Concept #3: 1 = MPC + MPS

Concept #4: Equation of the Consumption Function

Practice: Calculate the Marginal Propensity to Consume and the Marginal Propensity to Save using the following table: 

Practice: If the Keynesian consumption function is C = 10 + 0.8 Yd then, if disposable income is $1000, what is amount of total consumption?

Practice: If the Keynesian consumption function is C = 10 + 0.8 Yd then, when disposable income is $1000, what is the marginal propensity to consume?

Practice: An increase in the marginal propensity to consume will:

Next SectionThe Saving Function