INCOME, INTEREST RATES, POLICY, AND THE OPEN ECONOMY PART TWO INCOME, INTEREST RATES, POLICY, AND THE OPEN ECONOMY

The Simple Keynesian Theory of Income Determination Chapter 3 The Simple Keynesian Theory of Income Determination

Figure 3-1 A Simple Hypothesis Regarding Consumption Behavior Copyright © 2003 by Pearson Education, Inc.

Figure 3-2 The Relation Between Induced Consumption, Induced Saving, and the Consumption Function Copyright © 2003 by Pearson Education, Inc.

Figure 3-3 Consumption, Saving, and Disposable Income, 1929–2001 Copyright © 2003 by Pearson Education, Inc.

Figure 3-4 How Equilibrium Income Is Determined

Figure 3-5 The Change in Equilibrium Income Caused by a $500 Billion Increase in Autonomous Planned Spending Copyright © 2003 by Pearson Education, Inc.