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ADVANCED ANALYSIS Linear equations for the consumption and saving schedules take the general form: C = a + by and S= a + (1 b) Y, where C, S, and Yare consumption, saving, and national income, respectively. The constant a represents the vertical intercept, and b represents the slope of the consumption schedule. a. Use the following data to substitute specific numerical values into the consumption and saving equations. National Income (Y) $0 200 400 600 800 Consumption (C) $ 100 280 460 640 820

ADVANCED ANALYSIS Linear equations for the consumption and saving schedules take the general form: C = a + by and S= a + (1 b) Y, where C, S, and Yare consumption, saving, and national income, respectively. The constant a represents the vertical intercept, and b represents the slope of the consumption schedule. a. Use the following data to substitute specific numerical values into the consumption and saving equations. National Income (Y) $0 200 400 600 800 Consumption (C) $ 100 280 460 640 820

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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ADVANCED ANALYSIS Linear equations for the consumption and saving schedules take the general form: C = a + by and S= -a + (1 - b) Y, where C, S, and Yare consumption, saving, and national income, respectively. The constant a represents the vertical intercept, and b represents the slope of the consumption schedule. a. Use the following data to substitute specific numerical values into the consumption and saving equations. National Income (Y) $0 200 400 600 800 Consumption (C) $ 100 280 460 640 820
Transcribed Image Text:ADVANCED ANALYSIS Linear equations for the consumption and saving schedules take the general form: C = a + by and S= -a + (1 - b) Y, where C, S, and Yare consumption, saving, and national income, respectively. The constant a represents the vertical intercept, and b represents the slope of the consumption schedule. a. Use the following data to substitute specific numerical values into the consumption and saving equations. National Income (Y) $0 200 400 600 800 Consumption (C) $ 100 280 460 640 820
c. Suppose that the amount of saving that occurs at each level of national income falls by $20 but that the values of b and (1 - b) remain unchanged. Restate the saving and consumption equations inserting the new numerical values. Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. C= S= + + Y Y
Transcribed Image Text:c. Suppose that the amount of saving that occurs at each level of national income falls by $20 but that the values of b and (1 - b) remain unchanged. Restate the saving and consumption equations inserting the new numerical values. Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. C= S= + + Y Y
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