Chapter 16. Consumption

Homework: pp. 494-96 # 4, 6, 7b macromodel life_cycle_consumption the exercise

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Fig. 16-1, p. 467. The Keynesian Consumption Function

Fig. 16-2, p. 469. The Consumption Puzzle

The consumption function

Different Text

Fig. 16-3, p. 472. The Consumer’s Budget Constraint

Fig. 16-4, p. 473. The Consumer’s Preferences

Fig. 16-5, p. 474. The Consumer’s Optimum

Fig 16-6, p. 475. An Increase in Income

Fig. 16-7, p. 477. An Increase in the Interest Rate

Fig. 16-8, p. 478. A Borrowing Constraint

Fig. 16-9, p. 479. The Consumer’s Optimum with a Borrowing Constraint

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Fig. 16-10, p. 481. The Life Cycle Consumption Function

Intercept depends on wealth.

Fig. 16-11, p. 482. Changes in Wealth and the Consumption Function

Fig. 16-12, p. 482. Consumption, Income and Wealth over the Life Cycle.

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