Chapter 22

What Are the Major Forces Affecting Consumption and Investment?

Family Budget Expenditures
Show Regular Patterns

A Plot of the Consumption Function

The Saving Function Is the Mirror Image of the Consumption Function

The Slope of the Consumption Function Is Its MPC

Consumption and Disposable Income, 1929-1999

A Consumption Function for the United States, 1966-1999

Two Measures
of the Personal Saving Rate

Investment Depends
upon Interest Rate

Shifts in Investment
Demand Function