The conusumption schedule shows the various amounts that households plan to (save, consume) _____ at various levels of disposable income, and the saving schedule shows the various amounts that households plan to ____.
Both consumption and saving are (directly, indirectly) _______ related to the level of disposable income. At lower levels of disposable income, households tend to spend a (smaller, larger) _____ proportion of this income and save a ________ proportion, but at higher levels, they tend to spend a _____ proportion and save a ____ proportion. At the break-even income, consumption is (greater than, less than, equal to) _____ disposable income.
directly, larger, smaller, smaller, larger, equal to
The MPC is the change in (consumption, income) _______ divided by the change in _______.
The MPC is the numerical value of the slope of the (consumption, saving) ______ schedule, and the MPS is the numerical value of the slope of the _____ schedule.
The most inmportant determinants of consumption spending, other than the level of income, are:
wealth, expectations, taxation, household debt, real interest rate
An increase in the consumption schedule means that the consumption schedule shifts (upward, downward) ____ and a decrease in the consumption schedule means that it will shift ______, and these shifts occur because of a change in one of the nonincome determinants. An increase in the amount consumed occurs because of an increase in (income, stability) _____.
upward, downward, income