00:01
Want to look at the consumption function.
00:08
And what does it show? so let's see what that consumption function is.
00:12
It's an actual formula, which is just basically a linear function, a plus b, y, and a is the autonomous consumption, and then b is going to be the marginal propensity.
00:30
Because it's the slope.
00:32
So we're looking at the change in the propensity to solve, to spend, excuse me.
00:39
So what does it say? the consumption function shows blank an autonomous consumption is an upward slowing curve.
00:47
Well, we don't know that because we don't know what b is.
00:50
So we can eliminate that one.
00:52
B, that when households consume more, their exchange rates are high...