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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

 

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M921243

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