Suppose that the linear equation for consumption in a hypothetical eoonomy is: C-60+0.8Y. Also suppose that income (Y) is $300. Calculate the following: 1. The level of consumption Your unwer 2. The level of saving Your answer 3. The marginal propensity to consume Your answer 4. The marginel propensity to save
Suppose that the linear equation for consumption in a hypothetical eoonomy is: C-60+0.8Y. Also suppose that income (Y) is $300. Calculate the following: 1. The level of consumption Your unwer 2. The level of saving Your answer 3. The marginal propensity to consume Your answer 4. The marginel propensity to save
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:Suppose that the linear equation for consumption in a hypothetical economy
is: C-60+0.8Y. Also suppose that income (Y) is $300. Calculate the folowing:
1. The level of consumption
Your answer
2. The level of saving
Your answer
3. The marginal propensity to consume
Your answer
4. The marginal propensity to save
Your answer
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