In a simple economy (assume there are no taxes, thus Y is disposable income), the consumption function is C = 1000 + 0.8Y. Thus, autonomous consumption is enter your response here and the marginal propensity to consume is enter your response here. A consumer whose income increases by $100 will increase consumption by $enter your response here. Part 2 The saving function in this economy is: S=enter your response here+enter your response here Y.
In a simple economy (assume there are no taxes, thus Y is disposable income), the consumption function is C = 1000 + 0.8Y. Thus, autonomous consumption is enter your response here and the marginal propensity to consume is enter your response here. A consumer whose income increases by $100 will increase consumption by $enter your response here. Part 2 The saving function in this economy is: S=enter your response here+enter your response here Y.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In a simple economy (assume there are no taxes, thus Y is disposable income), the consumption function is
C = 1000 + 0.8Y.
Thus, autonomous consumption is
enter your response here
and the marginal propensity to consume is
enter your response here.
A consumer whose income increases by $100 will increase consumption by
$enter your response here.
Part 2
The saving function in this economy is:
S=enter your response here+enter your response here Y.
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