Suppose that the marginal propensity to consume is dC dy = 0.2 - e-0.5y (in billions of dollars) and that consumption is $9.5 billion when disposable income is $0. Find the national consumption function. C(y)=

Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter2: Functions
Section2.5: Linear Functions And Models
Problem 5E
icon
Related questions
Question
100%
Suppose that the marginal propensity to consume is
dC
dy
= 0.2 - e-0.5y
(in billions of dollars)
and that consumption is $9.5 billion when disposable income is $0. Find the national consumption function.
C(y)=
Transcribed Image Text:Suppose that the marginal propensity to consume is dC dy = 0.2 - e-0.5y (in billions of dollars) and that consumption is $9.5 billion when disposable income is $0. Find the national consumption function. C(y)=
Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Recommended textbooks for you
Algebra and Trigonometry (MindTap Course List)
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning