-Draw a Consumption Table Where Autonomous Consumption Is $200 and the Marginal

question 29

Essay

-Draw a consumption table where autonomous consumption is $200 and the marginal propensity to consume is .8. Make sure to start with an income level of $0 and increase by $100 each time up to an income level of $400. Without completing the table any further determine the level of income where consumption and income are equal. Prove this algebraically.

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Definitions:

Goal Orientation Theory

The view that achievement motivation depends on which of four goal orientations (mastery/approach, mastery/avoidance, performance/avoidance, performance/approach) an individual adopts.

Mastery/Avoidance

Goals oriented towards gaining proficiency in a task versus goals aimed at avoiding incompetence or failure.

Physiological Need

A basic biological requirement for human survival, such as food, water, and sleep, which must be satisfied to maintain health.

Extracellular Thirst

Thirst caused by a reduction in the volume of fluids found outside of the body cells, often due to blood loss or dehydration.