Planned spending will be greater than output.

Actual investment will be less than planned investment

Planned investment must exceed planned saving

Output is likely to be increased

The slope of the consumption function at any level of YDIS shows the value of MPCDIS at that level of YDIS

If YDIS in the economy was 1,000 billion dollar a year, planned consumer spending would also equal 1,000 billion dollar a year.

If YDIS in the economy was less than 1,000 billion dollar a year, planned saving would be negative

The consumption function must be a straight line.

A fall in share prices

A fall in interest rates

Expectations that the economy will soon go into a recession

Households deciding to be thriftier

An increase in autonomous consumption will shift W downwards

An increase in induced consumption would make the W line flatter

An increase in injections will shift the J line upwards

If either line shifts upwards, the equilibrium level of output will increase

I

G

M

X