Assume the slope of the consumption function is 0.75 and , Ask an Expert

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find out the consumption and Savings function.

Assume the slope of the consumption function is 0.75 and there was an increase in income of $100. Compute the increase in consumption.

1.Assume a Consumption function of the form C=200 + 0.8 Y. Derive the saving function and prepare out the algebraic representation.

2.(i) Fill the table given below.

(ii) Assume mpc is constant. In addition prepare the algebraic equation for consumption function.

INCOME (IN DOLLARS)	CONSUMPTION (IN DOLLARS)
0	200
100
200
300	425

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M921243

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