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)