ECSENOMICS Chapter 22 Consumption and Investment McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 22 Consumption and Investment
ECSENOMICS What Are the Major Forces Affecting Consumption and Investment? 1-157 Figure 22-1 Aggregate cmand Consump Investment Interaction ol AS and AD Aggregate McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. T-157 Figure 22-1 What Are the Major Forces Affecting Consumption and Investment?
ECSENOMICS Family Budget Expenditures Show Regular patterns 1-158 Figure 22-2 100.000 80.000 000 Medical and other 40.000 Transportation 20.000 Housing 0 20.000 40.000 60.000 80 000 100.000 McGraw-Hilllrwin ource: U.S. De partment of Labor, Consumer Expenditure Survey: Interview Survey 1984
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Family Budget Expenditures Show Regular Patterns T-158 Figure 22-2 Source: U.S. Department of Labor, Consumer Expenditure Survey: Interview Survey 1984, August 1986, updated to 2000 prices by authors
ECSENOMICS A Plot of the Consumption Function 1-159 Figure 22-3 Consumption 28,00 G fu 26,000 4,000 Consumption 22.000 20,000 20.00022.00024.00026.0002800030,000 Dis pos a ble income (dollars McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. A Plot of the Consumption Function T-159 Figure 22-3
ECSENOMICS The Saving Function Is the Mirror Sy Image of the Consumption Function T-160 Figure 22-4 3,000 2,000 F E 1,000 三 B Saving 0 1,000 L 20,00022,00024,00026,00028,00030,000 Dis posable income(dollars) McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. The Saving Function Is the Mirror Image of the Consumption Function T-160 Figure 22-4