ADVANCED ANALYSIS Linear equations for the consumption and saving schedules take the general form C=a+by and 512x 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 numerical values for a and b in the consumption and saving equations. National Income (Y) $0 100 200 300 400 Consumption (C) $ 70 140 210 280 350 Instructions: If you are entering any negative numbers, be sure to include a negative sign (-) in front of those numbers. C= S Y Y b. What is the economic meaning of b? (Click to select) What is the economic meaning of (1-b)? (Click to select) c. Suppose that the amount of saving that occurs at each level of national income falls by $20 but that the values of band (1- b) remain unchanged. Restate the saving and consumption equations inserting the new numerical values. C- S= Which of these factors might have caused this change? (Click to select)
ADVANCED ANALYSIS Linear equations for the consumption and saving schedules take the general form C=a+by and 512x 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 numerical values for a and b in the consumption and saving equations. National Income (Y) $0 100 200 300 400 Consumption (C) $ 70 140 210 280 350 Instructions: If you are entering any negative numbers, be sure to include a negative sign (-) in front of those numbers. C= S Y Y b. What is the economic meaning of b? (Click to select) What is the economic meaning of (1-b)? (Click to select) c. Suppose that the amount of saving that occurs at each level of national income falls by $20 but that the values of band (1- b) remain unchanged. Restate the saving and consumption equations inserting the new numerical values. C- S= Which of these factors might have caused this change? (Click to select)
Chapter1: Introducing The Economic Way Of Thinking
Section1.A: Applying Graphics To Economics
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Transcribed Image Text:ADVANCED ANALYSIS Linear equations for the consumption and saving schedules take the general form
C=a+by
and
512x
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 numerical values for a and b in the consumption and saving equations.
National Income (Y)
$0
100
200
300
400
Consumption (C)
$ 70
140
210
280
350
Instructions: If you are entering any negative numbers, be sure to include a negative sign (-) in front of those numbers.
C=
S
Y
Y
b. What is the economic meaning of b?
(Click to select)
What is the economic meaning of (1-b)?
(Click to select)
c. Suppose that the amount of saving that occurs at each level of national income falls by $20 but that the values of band (1- b)
remain unchanged. Restate the saving and consumption equations inserting the new numerical values.
C-
S=
Which of these factors might have caused this change?
(Click to select)
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