7. If the consumption function is given by C = 0.62Y + 50 state the values of(a) autonomous consumption(b) marginal propensity to consumeTranspose this formula to express Y in terms of Cand hence find the value of Y when C = 120.

Here, consumption function is given as: C=0.62Y+50 Where, C is consumption and Y is income.

Answered: 7. If the consumption function is given…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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7. If the consumption function is given by C = 0.62Y + 50 state the values of (a) autonomous consumption (b) marginal propensity to consume Transpose this formula to express Y in terms of Cand hence find the value of Y when C = 120.