Toll free: 1- 877- 252 - 7763 | Fax: 1- 425- 458- 9358
HomeSolution LibraryEconomicsMacroeconomics › Solution ID 6192

This solution has not been downloaded by you.

Download now to rate and review the solution!

Calculate the consumption and Savings function.

Views (2402)

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

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

2.(i) Fill the table given below.

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

0 200
300 425

Reviews & Ratings

You can help other students Rate this Solution!
Be the first to review this solution!
$ 3.99 Original Price: $ 6.99 Solution document is in Pdf format

Buy Now
cant find what your looking for