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Consumption function-savings function-investment function

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Reference no: EM131071189

Describe using a plus for an increase (+), a minus for a decrease (-), and an equal sign for remains the same (=) how each of the following events will affect the consumption function, savings function and investment function. (Use a table like the one given below to display your answer.)

Events:

a. A large increase in the value of real estate, including private houses.

b. A decline in the real interest rate.

c. A sharp, sustained decline in stock prices.

d. An increase in the rate of population growth.

e. The development of a cheaper method of manufacturing computer chips.

f. A sizable increase in the retirement age for collecting Social Security benefits.

Reference no: EM131071189

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