Suppose that the marginal propensity to save isdSIn(y + 1)= 0.93 –dy(in billions of dollars)y + 1and that consumption is $6.07 billion when disposable income is $0. Find the national consumption function.In y– 112+ 6.02y109C(y)0.93y -

Consumption is one of the components of aggregate demand, it shows how demand depends on the…

Suppose that the marginal propensity to save is dS = 0.93 dy In(y + 1) y + 1 (in billions of dollars) and that consumption is $6.07 billion when disposable income is $0. Find the national consumption function. In y– 11 2 + 6.02y10 9. C(y) = 0.93у — 2

Suppose that the marginal propensity to save is dS = 0.93 dy In(y + 1) y + 1 (in billions of dollars) and that consumption is $6.07 billion when disposable income is $0. Find the national consumption function. In y– 11 2 + 6.02y10 9. C(y) = 0.93у — 2

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter18: The Keynesian Model

Section: Chapter Questions

Problem 13SQ

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Question

Suppose that the marginal propensity to save is
dS
In(y + 1)
= 0.93 –
dy
(in billions of dollars)
y + 1
and that consumption is $6.07 billion when disposable income is $0. Find the national consumption function.
In y– 11
2
+ 6.02y10
9
C(y)
0.93y -

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