In the linear consumption functionthe (estimated) marginal propensity to consume (MPC) out...

In the linear consumption function

the (estimated) marginal propensity to consume (MPC) out of income is simply the slope, J3V while the average propensity to consume (APC) is cons/inc = (ijinc + fiv Using observations for 100 families on annual income and consumption (both measured in dollars), the following equation is obtained:

(i) Interpret the intercept in this equation, and comment on its sign and magnitude.

(ii) What is the predicted consumption when family income is $30,000?

(iii) With inc on the x-axis, draw a graph of the estimated MPC and APC.