Macroeconomics + Economy 2009 Update 18th Edition by Campbell McConnell, Sean Masaki Flynn,Stanley Brue

Exercise 8

Very briefly summarize the relationships shown by ( a ) the consumption schedule, ( b ) the saving schedule, ( c ) the investment demand curve, and ( d ) the multiplier effect. Which of these relationships are direct (positive) relationships and which are inverse (negative) relationships Why are consumption and saving in the United States greater today than they were a decade ago